ISLAMABAD: In a recent development, the Islamabad Capital Territory has witnessed a crackdown on tax evasion and non-compliance, with several restaurants being sealed for issuing fake receipts and tax fraud.
In a notification issued by Federal Board of Revenue (FBR), a total of 29 restaurants have been sealed in Federal Capital. As of July 1, 2024, to December 10, 2024, a total of 17 restaurants were sealed, including Eatly Restaurant, Shah G Foods, Mirchi 360, Albaik, Kabul Restaurant, and others.
The list of sealed restaurants issued by FBR also includes Malang Jan Restaurant, KC Grill, Bashah Istanbol, Aadab Restaurant, Hot n Chilli, Butt Karahi, Bismillah Tikka and Chargha, Subway, Crusteez Donuts, and Rumba.
Additionally, another 12 restaurants were sealed from December 11, 2024, to January 31, 2025, including Wajid Fish & Tikka, Landi Kotal Shinwari, Kaf China Hotpot, Rewayat, and The Lost Tribe.
Moreover, FBR has warned that any businesses found to be evading taxes or failing to comply with regulations will face severe penalties, including sealing of premises and imposition of fines.
In the light of increasing numbers of tax fraud and fake receipts, the FBR has initiated the Point of Sale Reward scheme, which aims at encouraging the citizens to report fake invoices for ensuring compliance.
The scheme offers rewards to the citizens for reporting tax evasion and non-compliance as a part of FBR’s efforts to boost revenue and promote tax compliance in the country.
The FBR has also issued a notification regarding the sales tax on services in the Islamabad Capital Territory, outlining the procedures and guidelines for the collection of sales tax on services and emphasizing the importance of compliance with tax regulations.
The sales tax collection in the Islamabad Capital Territory have received significant surge in the last seven month, with the total collection amount for the seven months reaching Rs 1398 million.
The highest ever collection was made during January, 2025 at Rs220 million. The breakdown of the collection amount in the last seven months is as follows: In July, 2024 the total tax revenue is recorded at Rs155 million , In August is was at Rs207 million, September (Rs210 million), October (Rs208 million), November (Rs190 million), December (Rs203 million), and in January, 2025 a total of Rs220 million was collected by FBR.
The significant boost in the tax revenue generation highlights the government’s efforts to increase revenue and ensure compliance with the law in the Islamabad Capital Territory.
The FBR attributed the increase in sales tax collection to effective enforcement of the law and better awareness and compliance on the part of taxpayers.
