Karachi, May 16, 2025 – The Regional Tax Office (RTO)-1 Karachi has sealed a car showroom for violating the mandatory Point of Sale (POS) integration requirements set by the Federal Board of Revenue (FBR).
The action was taken as part of a broader crackdown on non-compliance in the retail and commercial sectors.
According to official sources, the car showroom located in the posh Clifton area of Karachi had installed a POS system physically but failed to integrate it with the FBR’s real-time online monitoring platform. This violates FBR’s policy aimed at ensuring transparency and proper documentation of business transactions.
The operation was carried out under the supervision of the Chief Commissioner Inland Revenue (CCIR) of RTO-1 Karachi, who emphasized the importance of full POS integration to track sales and improve tax compliance in high-revenue sectors such as automobile dealerships. The POS system is crucial for the FBR as it facilitates real-time monitoring and digital reporting of sales, production, and other business activities.
RTO-1 officials highlighted that the action was taken under Section 33 of the Sales Tax Act, 1990, which imposes stringent penalties for non-compliance. Offending businesses may face a fine of Rs 500,000 or 200% of the tax amount, whichever is greater. In more serious cases, the law provides for imprisonment of up to two years and an additional fine of up to Rs 2 million. The Act also authorizes tax authorities to seal any non-compliant business premises, as was done in this case.
This latest enforcement underscores RTO-1 Karachi’s firm stance on ensuring that showrooms and other businesses adhere strictly to POS regulations. The car showroom in Clifton is among several high-profile businesses targeted for failing to comply with FBR directives.
In a recent similar move, RTO-1 Karachi sealed a well-known jewelry outlet on Tariq Road for also violating the POS integration requirement. These back-to-back actions reflect the tax office’s intensified efforts to bring more transparency and accountability into sectors known for high-value transactions.
Authorities reiterated that all showrooms and retailers must integrate their POS systems with the FBR to avoid severe penalties and business disruptions.