Karachi, February 18, 2025 – In a significant move against non-compliance with tax regulations, the Regional Tax Office (RTO)-1 Karachi has sealed three major retail outlets on Tariq Road for violating Point of Sale (POS) rules.
Tariq Road, known as one of Karachi’s busiest commercial hubs, witnessed these enforcement actions as part of RTO-1 Karachi’s ongoing crackdown on businesses flouting POS integration requirements.
According to an official statement issued on Tuesday, RTO-1 Karachi conducted three separate operations in a single day. In the first action, a well-known fashion designer outlet was sealed for issuing receipts disconnected from the POS system. Subsequently, RTO-1 Karachi teams sealed two additional stores—one specializing in children’s toys and the other in household items—for similar violations.
READ MORE: FBR Tightens POS Rules to Seal Tier-1 Retailer Outlets
The enforcement actions were carried out within the jurisdiction of RTO-1 Karachi Zone 3 under Rule 150ZEO of the Sales Tax Rules, 2006. The rule mandates that all Tier-1 retailers must be integrated with the Federal Board of Revenue’s (FBR) POS system to ensure real-time sales reporting and prevent tax evasion.
Chief Commissioner Dr. Faheem Muhammad commended the RTO-1 Karachi team for their swift action, highlighting the significance of these measures in promoting tax compliance. “Ensuring compliance with POS regulations is essential for transparent business practices. Our team’s dedication in sealing three outlets in one day demonstrates our resolve against violations,” he stated. Dr. Muhammad also directed officials to intensify these operations in the coming days.
The crackdown follows the FBR’s recent amendments to the Sales Tax Rules through SRO 164(I)/2025. The updated rules empower tax authorities to seal any retail outlet found issuing unverified invoices or disconnecting from the POS network for more than 48 hours. Additionally, retailers are required to upload offline sales records within 24 hours of reconnection. Non-compliance with these requirements will result in sealing the premises.
Previously, authorities could only act if three unverified invoices were issued in a day or five within a week. The lowered threshold signals a more aggressive approach toward tax evasion.
RTO-1 Karachi reiterated its commitment to ensuring that all retailers comply with the POS integration rules to support transparent tax collection and strengthen Pakistan’s financial system.