Hina Javed Malik
The public authority is contemplating placing into the impact a stand-out proposition in the spending plan for 2023 and 2024 that would restrict cash exchanges in retail foundations and food retail foundations/eateries more than a specific cutoff starting on July 1, 2023.
The Federal Board of Revenue (FBR) is looking at whether this proposition is practicable and regardless of whether it will likewise increment documentation.
It was informed by sources that the proposal is attainable, but it is still unclear whether it would be practical. Electronic payments would benefit from these significant restrictions on cash transactions beyond a certain threshold.
It is suggested that cash exchanges past a specific cutoff, e.g., Rs 10,000 and Rs. 5,000 should not be allowed in food and retail establishments or restaurants. All things considered, electronic installment choices like charge and Visas, portable installments, and different types of non-cash installment ought to be energized.
For this reason, retail outlets ought to be expected to introduce Point of sale (POS) machines that acknowledge non-cash exchanges. In addition, retailers should receive incentives from the government for implementing electronic payment systems.
The limitations on cash exchanges past a specific cutoff and the advancement of electronic installments can carry straightforwardness and responsibility to the retail area.
It will lessen the probability of tax avoidance and other criminal operations by guaranteeing that all exchanges are recorded and can be followed. According to the sources, it will also provide actionable information while also promoting financial inclusion and the use of banking services.
