FBR seals luxury watch outlets in Karachi for tax evasion

The Federal Board of Revenue (FBR) sealed three luxury watch outlets in Karachi for tax evasion, ARY News reported on Wednesday.

As per details, the Large Tax Office (LTO) of the Federal Board of Revenue (FBR) has launched an operation against tax evasion and sealed three outlets selling luxury watches for non-compliance with the Point of Sale (POS) system.

According to FBR sources, the LTO team has seized business records from these outlets. The tax filers declared a stock worth Rs40 million, whereas records indicate sales of luxury watches worth Rs700 million.

With a 25% sales tax applicable on luxury watches, the estimated tax liability amounts to Rs180 million.

The FBR emphasized that strict action would be taken against businesses evading taxes.

Last year, the Post Clearance Audit team (PCA-North) of the Federal Board of Revenue (FBR) exposed a massive tax evasion scam in the port city.

The investigation revealed that the goods worth Rs3.7 billion were illicitly sold under the pretext of tax exemption for the Federally Administered Tribal Areas (FATA), and Provincially Administered Tribal Areas (PATA).

Notably, duty-free imported goods were illegally distributed beyond the designated boundaries of FATA and PATA, violating customs regulations.

The customs officials stated that the duty-free imported goods could be sold only within the limits of FATA, and PATA regions.