Karachi: The Federal Board of Revenue (FBR) has taken decisive action against prominent Western apparel brand Sowears, sealing its offices and five of its retail outlets in Karachi for allegedly evading taxes amounting to over Rs. 100 million.
According to official reports, the brand failed to integrate its Point of Sale (PoS) systems with the FBR’s centralized monitoring platform, a legal requirement in place since 2018.
This non-compliance enabled the concealment of taxable income and resulted in substantial losses to the national exchequer.
The FBR crackdown affected major Sowears retail locations, including outlets in Lucky One Mall, Dolmen Mall, Ocean Mall, Hyderi Market, and Saima Mall.
The move marks one of the more high-profile enforcement actions against a fashion retailer in recent months, as the tax authority intensifies efforts to broaden the tax net and crack down on commercial non-compliance.
In addition to domestic irregularities, the FBR alleges that Sowears was involved in undisclosed international business operations in the UAE and the United States.
These activities, reportedly conducted via courier services, were not declared in the company’s income tax filings within Pakistan, raising red flags about possible tax fraud on a global scale.
Further investigations have uncovered suspected links to illegal banking transactions and the use of shell companies, suggesting the potential involvement of a broader financial network aimed at tax evasion and revenue concealment.
The FBR is expected to pursue legal proceedings against the company, while continuing its probe into both local and offshore assets associated with Sowears.
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This case underscores the government’s intensified push for tax compliance, particularly targeting retail chains and high-revenue businesses suspected of underreporting sales and income.
