ISLAMABAD: Federal Board of Revenue (FBR) has recently launched an online system to monitor income derived by medical practitioners, doctors, and consultants in order to prevent tax evasion.
The FBR has introduced electronic fiscal devices to be installed at the premises of hospitals, health centres, and clinics. In order to implement the law to install electronic fiscal devices, the FBR issued draft rules through SRO 779(I)/2020.
This electronic fiscal device will be mandatory for medical practitioners and consultants. However, those medical practitioners and consultants will be exempted from the installation of a fiscal device where: the consultation is being provided at a place other than a hospital or polyclinic; and the consultation fee is less than Rs1500.
Similarly, the installation of the fiscal electronic devices is also mandatory for hospitals or medical care centres providing medical consultation, hospitalization, or other ancillary services.
According to the draft rules pathological laboratories, medical diagnostic laboratories including X-Rays, CT Scan, M R Imaging, etc. shall also require to install the electronic fiscal device. However, exemption is available, where: the taxpayer is not a company; and the taxpayer is not maintaining more than one branch whether under its own name or through an associate.
Furthermore, the installation of the fiscal electronic devices is also mandatory for health clubs, gyms, physical fitness centres, and body or sauna massage centres. Exemption from this condition has been allowed, where: the covered area is less than 1000 sq feet, or the facility of air-conditioning is not installed or available in the premises.
The FBR has made mandatory the condition of installing fiscal electronic devices for doctors, medical practitioners, and consultants practicing in eight major cities of the country, which included: Karachi, Lahore, Islamabad, Rawalpindi, Faisalabad, Multan, Peshawar, and Gujranwala.