Islamabad, Mar 27, 2025: The Federal Board of Revenue (FBR) has taken decisive action against tax evasion by shutting down three high-end watch stores in Karachi.
These businesses were found guilty of failing to comply with the mandatory Point of Sale (POS) system.
As per FBR sources, the stores had officially reported inventory valued at Rs. 40 million.
However, financial records suggest that the actual revenue generated was an astonishing Rs. 700 million. Given that luxury watches are subject to a 25 percent sales tax, the estimated unpaid tax liability amounts to approximately Rs. 180 million.
To ensure accountability, FBR has confiscated crucial business records and pledged firm legal action against those responsible.
It is worth noting that a similar tax evasion case surfaced last year, when an FBR probe revealed a Rs. 3.7 billion scam involving duty-free goods intended for the Federally and Provincially Administered Tribal Areas (FATA and PATA).
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The audit uncovered that these imported items, which were exempted from taxes, had been illicitly distributed beyond the designated regions, thereby violating customs regulations.
FBR remains committed to enforcing tax compliance and taking strict measures against businesses that engage in fraudulent activities.
Authorities have warned that any company found guilty of tax evasion will face legal consequences, ensuring that the country’s tax system remains fair and transparent.
This latest crackdown highlights the government’s efforts to curb financial misconduct and recover lost revenue, ultimately strengthening Pakistan’s economic framework.
