ISLAMABAD: The representative body of the medical fraternity, the Pakistan Medical Association (PMA), has expressed reservations over the proposed implementation of the Point of Sale (POS) system in small hospitals, arguing that the measure would increase compliance costs and administrative burdens without significantly enhancing tax collection.POS is a computerised digital billing tool linked directly to the Federal Board of Revenue to report sales in real time, automate tax compliance and print receipts featuring unique QR codes and verification numbers.
In a joint statement, PMA Centre General Secretary Dr Abdul Gafoor Shoro, PMA Punjab President Dr Zahid Maqsood and former PMA Punjab President retired Lt Col Dr Ghulam Shabbir said the medical community fully supported taxation and recognised it as a legal and national obligation.
However, they maintained that the proposed POS system was unsuitable for small healthcare facilities because hospitals function differently from retail businesses.
“The medical community is not against paying taxes. Our concern is with the introduction of a system that is impractical for small hospitals, imposes a disproportionate compliance burden, and is unlikely to achieve its stated objective of increasing tax collection,” said Dr Shoro.
He said more than half of Pakistan’s small hospitals already maintained proper financial records and regularly paid income tax.
“For these institutions, the POS system will not significantly increase government revenue. Instead, it will increase operational expenses, administrative responsibilities and expose healthcare providers to greater regulatory harassment,” he added.
Speaking on the operational challenges, Dr Zahid said hospitals provide medical services round the clock, often under emergency conditions, making real-time transaction reporting impractical.
“A hospital is not a retail outlet. Medical services are delivered 24 hours a day, and emergencies cannot be managed like commercial sales transactions. Most small hospitals cannot afford dedicated IT or data-entry staff on every shift solely to ensure continuous POS compliance,” he explained.
Retired Dr Ghulam Shabbir questioned the effectiveness of the proposed system in increasing tax revenues from hospitals that are already within the documented economy.
“Hospitals that maintain audited accounts already pay income tax on their taxable income after claiming deductions and expenses permitted under the law. Even if POS reporting is introduced, legitimate expenses such as building maintenance, equipment depreciation, and capital investments will continue to be claimed. As a result, taxable income may remain largely unchanged while compliance costs increase substantially,” he said.
Published in Dawn, August 2nd, 2026
