Karachi, January 21, 2025 – The Regional Tax Office-1 (RTO-1) Karachi has taken decisive action by sealing a toy shop located in one of the city’s major commercial areas for violating Point of Sale (POS) regulations.
This step is part of RTO-1 Karachi’s ongoing campaign to ensure compliance with tax laws and improve transparency in business operations.
According to sources, RTO-1 Karachi, an integral arm of the Federal Board of Revenue (FBR), is intensifying its crackdown on businesses failing to comply with POS requirements. On Tuesday, the tax office sealed a children’s toy shop that was found issuing invoices not linked to the mandatory POS system. Such practices directly contravene the legal requirements aimed at documenting sales and improving tax collection.
The operation was conducted within the administrative jurisdiction of Zone 3, RTO-1, specifically on Tariq Road, a bustling commercial hub in Karachi. Officials confirmed that the action was carried out under Rule 150ZEO of the Sales Tax Rules, 2006. This rule mandates the integration of retail outlets with the FBR’s POS system to ensure proper reporting of sales and prevent revenue leakages.
Dr. Faheem Muhammad, Chief Commissioner of RTO-1, stated, “Violations of POS regulations will not be tolerated under any circumstances. Businesses failing to comply with the rules will face strict penalties, including the sealing of their premises.” He added that RTO-1 Karachi’s efforts are crucial in supporting the government’s objective of broadening the tax net and ensuring fair tax practices across all sectors.
The Zonal Commissioner overseeing Zone 3 highlighted that such actions against non-compliant businesses are necessary to deter others from flouting the regulations. “RTO-1 Karachi is committed to ensuring that every business operates within the legal framework,” the commissioner noted.
RTO-1 Karachi’s campaign to enforce POS compliance reflects its dedication to strengthening Pakistan’s tax infrastructure. By targeting violations, RTO-1 aims to promote a culture of accountability and transparency within the business community. The Chief Commissioner reaffirmed that this drive will continue until all businesses in the region adhere to the prescribed rules, ensuring a level playing field for compliant taxpayers.