Karachi, January 2, 2024 – The Sindh Revenue Board (SRB) has sealed branches of a prominent fitness gym, Shadow Fitness Gym, for violating the Sindh Sales Tax on Services Act, 2011.
The provincial revenue authority, in its relentless pursuit of non-compliant taxpayers, took action against the gym for its failure to pay sales tax and non-filing of monthly sales tax returns, resulting in substantial losses in Sindh sales tax revenues.
In an official statement released on Tuesday, the SRB outlined the sequence of events leading to the sealing of two business premises belonging to Shadow Fitness Gym. The gym had been repeatedly urged by the SRB to complete its registration with the provincial revenue board, settle the outstanding amounts of monthly sales tax, and adhere to the e-filing process for monthly sales tax returns. Despite being provided ample time for compliance, the fitness establishment failed to meet these requirements.
The SRB, in its commitment to enforcing tax regulations, initiated the sealing of the gym’s business premises as a consequence of its non-compliance. The revenue authority has made it clear that similar action will be taken against other fitness gyms that do not fulfill their obligations, including completing registration with the SRB, depositing due amounts of Sindh sales tax, and electronically filing monthly sales tax returns. The SRB emphasized that attempts to suppress sales or evade tax responsibilities will not be tolerated.
This crackdown on tax violators comes at a time when the Sindh government is intensifying efforts to bolster its revenue streams. The action against Shadow Fitness Gym serves as a warning to other businesses that may be neglecting their tax obligations. The SRB has reaffirmed its commitment to creating a fair and transparent taxation system, ensuring that businesses contribute their due share to the economic development of the province.
The fitness industry, in particular, has witnessed a surge in popularity, with numerous gyms and fitness centers mushrooming across Sindh. However, this growth has also raised concerns about tax compliance within the sector. The SRB’s action against Shadow Fitness Gym sends a clear signal that irrespective of the industry, businesses must adhere to tax regulations to avoid severe consequences.
Industry experts are closely watching this development, acknowledging the need for businesses to prioritize tax compliance in order to foster a conducive business environment. The SRB’s stringent measures are expected to encourage other businesses to review their tax practices and ensure full compliance with the prevailing tax laws.
As the Sindh Revenue Board continues its campaign against tax evasion, the sealing of Shadow Fitness Gym’s branches underscores the importance of a collaborative effort between businesses and regulatory authorities to maintain a robust and fair economic landscape. The message is clear: tax evasion will not be tolerated, and stringent measures will be taken against those who fail to meet their tax obligations.
