Karachi, April 17, 2024 – The Sindh Revenue Board (SRB) launched a crackdown on renowned restaurants in Karachi on Wednesday, targeting establishments that have flouted tax laws and failed to comply with regulatory requirements.
In a statement issued by the SRB, it was revealed that the board conducted raids on three prominent restaurants in Karachi as part of its ongoing efforts to tackle non-compliance within the hospitality sector. The targeted restaurants include Biryaniwala, Ibn-e-Battuta, and Al-Fajr, all of which stand accused of various infractions, including non-payment of Sindh sales tax, failure to file sales tax returns, and non-integration with the SRB Point of Sale (POS) invoicing system.
The raids were prompted by the discovery of systematic under-declaration of sales and the absence of integration with the SRB’s invoicing system, which has led to sales suppression and evasion of sales tax on services provided by these establishments.
Despite prior notices and warnings issued by the SRB, these restaurants continued to operate in contravention of tax laws, prompting officers from the revenue board to take decisive action. During the raids, SRB officials seized records and evidence that unequivocally demonstrate the extent of non-compliance and tax evasion related to the provision of services.
The seized evidence is currently under scrutiny and examination at SRB headquarters. Subsequently, the SRB intends to initiate necessary recovery measures and impose penalties on the non-compliant establishments in accordance with the law.
Emphasizing its commitment to enforcing tax regulations and ensuring compliance within the hospitality industry, the SRB affirmed its determination to continue taking similar action against other non-compliant restaurants and cafes across Sindh. The board reiterated that it will not tolerate any form of tax evasion or non-compliance, emphasizing the importance of contributing the due amount of sales tax to the government treasury.
The crackdown on non-compliant restaurants is part of the SRB’s broader strategy to enhance tax collection efficiency and promote a culture of transparency and accountability within the business community. By holding businesses accountable for their tax obligations, the SRB aims to safeguard public finances and strengthen the overall fiscal framework of the province.
As the SRB intensifies its enforcement efforts, restaurant owners and operators are urged to prioritize compliance with tax laws and regulations to avoid penalties and legal repercussions. Compliance with tax obligations not only fosters a conducive business environment but also ensures the fair and equitable distribution of tax revenue for the benefit of society as a whole.
