FBR seals 3 luxury watch shops in Karachi  

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.

The FBR has uncovered significant tax evasion by businesses dealing in luxury watches. These businesses reported a stock value of only Rs40 million, while their actual sales totaled Rs700 million. Due to this underreporting, they owe Rs180 million in taxes, as luxury watches are subject to a 25% sales tax.

Authorities have seized business records and are taking action against those involved in tax evasion. This crackdown is part of the FBR’s broader effort to ensure tax compliance. Last year, a similar operation revealed a larger scheme where goods worth Rs. 3.7 billion were sold outside the duty-free zones of FATA and PATA, violating customs regulations. The FBR remains committed to curbing tax fraud and enforcing strict measures against violators.