Top fashion brands penalized for sales tax evasion in Mirpur

MIRPUR: In a major crackdown against tax evaders, the Deputy Commissioner Inland Revenue Department has taken strict action in Mirpur against renowned clothing brands.

The country’s famous clothing brand had not paid sales tax despite the brand deducting 18% of the sales of clothes to the public in the fiscal year 2024-25.

The brands failed to submit the revenue to the government on time, leading the relevant authority to take action against the aforementioned clothing brands.

DC Inland Revenue, Mahmood Alam Chaudhry, had passed an adjudication order worth about Rs3 crores for the said year based on the information, but the brand deposited only Rs54 lakhs in the treasury.

On the special instructions of the Chairman, Central Board of Revenue, Mr. Chaudhry Raqeeb, Commissioner Inland Revenue South Zone, Syed Ansar Ali Naqvi gave instructions to recover the sales tax by freezing the account in the private bank of the brand.

The committee comprising field staff, Inspector Nasir Mahmood, Inspector Asif Shah, Inspector Muhammad Luqman Jaral, accompanying staff, Ghulam Ghaus, and Raja Mazhar took timely action against the tax evaders.

A huge amount of Rs. 25,279,114 was withdrawn from the accounts of the tax defaulting company and deposited with the Finance Department.