Karachi, September 22, 2025 – The Regional Tax Office (RTO)-1 Karachi carried out a surprise raid on the headquarters of a well-known retail chain over suspicions of large-scale sales tax evasion. The action reflects the Federal Board of Revenue’s (FBR) strict stance on tax compliance and its growing focus on the retail sector.
According to an official statement, tax officers from RTO-1 Karachi inspected the premises of the retailer located in Saddar. The team thoroughly examined records and stock registers, invoking Section 38 of the Sales Tax Act, 1990. This provision empowers tax authorities to enter business premises, review accounts, and seize documents necessary for investigations.
The retail chain in question is known for its men’s and children’s clothing line, as well as related accessories. With over 30 outlets across Pakistan, the brand enjoys a wide customer base. However, officials suspect that the company failed to properly deposit collected sales tax into the national exchequer. During the raid, important records and digital data were taken into custody to estimate the scale of the alleged tax evasion.
Authorities emphasized that sales tax is collected from end consumers and must be deposited with the government. Any attempt to withhold such tax undermines public revenue. The RTO-1 Karachi officials further stated that sales tax evasion will not be tolerated under any circumstances, and strict action will be taken to bring violators to justice. Such measures, they added, are necessary to create deterrence and ensure fairness in the tax system.