All registered shops across Pakistan must connect to the Federal Board of Revenue’s digital tax system within one week, under a new notification issued by the tax collection authority.

The notification requires all businesses operating point-of-sale machines to integrate their systems with the FBR. It expands the scope of mandatory integration to a wide range of sectors, including hotels, guest houses, marriage halls and clubs.

Intercity transport operators, courier companies and cargo services have also been directed to link their operations to the tax authority’s system.

The order applies to beauty parlors, slimming centers, massage centers and beauty clinics, as well as hair transplant clinics, private medical clinics, dental clinics and plastic surgeons. Laboratories, veterinary clinics, diagnostic centers and X-ray facilities are also covered.

Private hospitals, private consultants and other health care providers must comply with the directive. Health clubs, swimming pools, fitness centers and multipurpose clubs are also required to join the tax network.

Prominent clubs named in the notification include Karachi Gymkhana, Royal Palm Golf and Country Club, Chenab Club, Islamabad Club and Lahore Gymkhana.

The notification further states that chartered accountant firms and providers of cost and management services must also integrate with the system, along with manufacturers-cum-retailers, wholesalers-cum-retailers and importers-cum-retailers.

Educational institutions, including schools, colleges, training centers and universities charging monthly fees of PKR 1,000, are also required to link to the tax system.

Under Section 33 of the Income Tax Ordinance, integration into the tax system will be a basic condition for covered businesses. The notification adds that businesses connected to the system must install point-of-sale machines.

Under Section 33B, the FBR will be authorized to obtain up to one month of CCTV footage from businesses integrated into the system.