What could be termed an important development, the Federal Board of Revenue (FBR), in order to control tax evasion and document the country’s economy, has made linking of all large hospitals, gyms, clubs, private schools, colleges and other organizations to its software system mandatory. As per the notification issued by the FBR on Monday, which will come into effect on July 1, 2024, several firms, elite clubs, health, educational institutions, gyms, health clubs, personal care, healthcare organizations and slimming clinics will be linked to the software.  Similarly, it said that Karachi Gymkhana, Lahore Gymkhana, Polo Club, Royal Palm Lahore, Islamabad Club and Chenab Club would also be linked to the FBR’s software. Likewise, now it has been made obligatory on money changers, forex dealers, foreign firms, all large hospitals, laboratories, private schools and colleges, medical diagnostic laboratories, clinics and practitioners to also get linked to the software.

As per the notification, all firms have been made bound to share with the Board the number of its employees and other details.  According to the FBR officials, the purpose of installation of the software under the Online Integration of Business is to broaden the tax base by including new companies and people into the tax net. They hope that under the new arrangement, tax evasion will be controlled. They have said that a committee nominated by the FBR will issue a license for the software. The notification, however, will not apply to non-AC hotels and motels covering an area less than 45 square feet. Similarly, the notification also exempted non-AC small hotels from getting linked to the software system.

Credit: Independent News Pakistan