The government is considering implementing a unique proposal in the budget (2023-24) to impose a ban on cash transactions beyond a certain limit at retail outlets and food retail outlets/restaurants from July 1, 2023.
According to the details, the Government plans to ban cash transactions in Pakistan beyond a certain limit e.g. Rs 10,000 and Rs. 5,000, from 1 July 2023 and tax collection authorities are looking into whether this proposal is feasible and whether it will promote payments via card and other means that are documented.
The proposal is reportedly under review as restrictions on cash transaction will force buyers and sellers to go for electric payment methods like debit/credit cards, mobile payments or other forms of e-payment options.
It was reported that the country’s apex tax collection authorities are looking into whether this proposal is feasible and whether it will push the masses to pay via card or other means which comes under documentation.
If implemented, all retailers will require to install Point of Sale (POS) machines that accept non-cash transactions. It was also learnt that the government is mulling some rewards for a shift toward e-payments as it will bring a more transparent payment structure.
The promotion of electronic payments and limitations on cash transactions beyond a specific threshold can increase the retail industry’s openness and accountability.
It will make sure that every transaction is documented and traceable, decreasing the possibility of tax evasion and illegal acts. Additionally, it will promote financial inclusion and the usage of banking services while also offering information that may be put to use, according to FBR.
