Pakistan

FBR seals three luxury watch shops in Karachi amid tax fraud

Published by
Staff Reporter

KARACHI: The Federal Board of Revenue (FBR) has taken action against three luxury watch stores in Karachi for tax fraud and for not utilizing the Point of Sale (POS) system.

The FBR says these businesses have significantly underreported sales, reflectingtotal stock value of just Rs. 40 million but made total sales of Rs. 700 million.

Because of this, the businesses owe the FBR taxes in the amount of Rs. 180 million (the sales tax on luxury watches is 25%). The FBR has seized business records and stated it will take action against individuals it believes are actively avoiding taxes.

This is part of the FBRs larger, more widespread initiative to address tax evasion and ensure compliance. The FBR conducted a similar initiative last year which uncovered an even larger scheme for avoiding the payment of taxes, in which the FBR discovered duty avoided on goods valued at Rs. 3.7 billion, which were sold under the duty-free zone for FATA and PATA.

The audit discovered the imported goods were being sold outside of the permitted area for sale and use, in violation of customs.

Staff Reporter

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