The Federal Board of Revenue (FBR) has taken decisive action by sealing three luxury watch shops in Karachi over allegations of significant tax evasion and failure to integrate with the mandatory Point of Sale (POS) system.
According to sources, the businesses had declared inventory valued at Rs. 40 million. However, official records revealed actual sales figures of Rs. 700 million. With a sales tax rate of 25 percent applied to luxury watches, this amounts to an estimated tax liability of Rs. 180 million. FBR has confiscated business records and emphasized that stringent measures will be taken against the entities involved.
It is worth noting that a previous investigation by FBR unearthed a tax evasion scheme worth Rs. 3.7 billion, involving the illegal sale of duty-free goods intended for the Federally and Provincially Administered Tribal Areas (FATA and PATA). These goods, exempt from taxes, were unlawfully sold outside the designated regions, breaching customs regulations.