Karachi, February 26, 2025 – In a decisive move against businesses failing to adhere to federal tax regulations, RTO-I Karachi has sealed a prominent medical store located in the upscale Clifton area.
The action, conducted on Wednesday, was prompted by the medical store’s persistent failure to fully integrate its sales operations with the Federal Board of Revenue’s (FBR) Point of Sale (POS) system.
This enforcement action, carried out under the directives of the Chief Commissioner Inland Revenue (CCIR), underscores the commitment of RTO-I Karachi to ensuring compliance with the Sales Tax Act, 1990. The POS integration is a crucial tool for the FBR, enabling the real-time monitoring, tracking, and reporting of sales, production, and other business transactions. However, the sealed medical store repeatedly failed to issue verifiable, POS-generated receipts, a clear violation of the Act’s provisions.
Officials from RTO-I Karachi emphasized the severity of these violations, citing Section 33 of the Sales Tax Act, 1990, which outlines stringent penalties for non-compliance. These penalties include a fine of Rs 500,000 or 200% of the tax involved, whichever is higher. Furthermore, violators face potential imprisonment for up to two years and an additional fine of up to Rs 2 million upon conviction. Crucially, the Act also authorizes the sealing of business premises by Inland Revenue officers, a measure now implemented by RTO-I Karachi.
The medical store will remain sealed until all outstanding sales tax dues are paid or recovered in full, and until complete integration with the FBR’s invoicing system is achieved. RTO-I Karachi officials reiterated that this action serves as a strong deterrent to other businesses that may be neglecting their POS integration obligations. The aim is to create a level playing field and ensure that all businesses contribute their fair share to the national tax revenue. The operation carried out by RTO-I Karachi is a clear signal of the FBR’s commitment to enforcing tax laws across the region.