FBR Seals Three Luxury Watch Shops in Karachi For Over Rs. 180 Million Tax Fraud

The Federal Board of Revenue (FBR) has sealed three luxury watch outlets in Karachi for tax evasion and non-compliance with the Point of Sale (POS) system. According to FBR sources, the businesses declared stock worth Rs. 40 million, while records indicate actual sales of Rs. 700 million. With a 25 percent sales tax on luxury watches, the estimated tax liability stands at Rs. 180 million. FBR has seized business records and vowed strict action against these alleged tax evaders. It bears mentioning that an FBR investigation last year exposed a Rs. 3.7 billion tax evasion scam involving duty-free goods meant for FATA and PATA. The audit found that imported goods, exempted from taxes, were illegally sold outside designated areas, violating customs laws.