Karachi, September 24, 2024 – The Sindh Revenue Board (SRB) has taken decisive action against a prominent restaurant in Karachi for its continued non-compliance with Sindh sales tax laws.
The SRB has sealed the premises of M/s Alaska Restaurant, located in Clifton Block-4, citing violations of the rules related to e-invoicing and tax filing obligations.
In a statement released on Tuesday, the SRB confirmed that Alaska Restaurant had been found persistently failing to adhere to the regulations surrounding the Sindh Sales Tax (SST) despite its integration with the SRB’s Point of Sale (POS) e-invoicing system. The restaurant allegedly failed to file the prescribed tax returns and was involved in suppressing sales, leading to a significant loss in SST revenue.
The SRB highlighted that it had issued multiple warnings to the restaurant, urging it to comply with the tax laws and avoid penalties. However, despite these repeated warnings, Alaska Restaurant continued its non-compliant behavior, leaving the SRB with no choice but to take enforcement action. The restaurant’s non-compliance constitutes offenses punishable under Sindh sales tax laws.
As a result, the SRB officers sealed the premises of the restaurant, and further actions are expected to be taken in accordance with the legal provisions. The SRB emphasized that this step was necessary to enforce tax compliance and prevent revenue loss that directly impacts the provincial economy.
This sealing action serves as a reminder of the SRB’s ongoing efforts to ensure that businesses, especially those in the hospitality sector, comply with the legal requirements to issue proper SRB-prescribed POS tax invoices to their customers. These invoices are crucial for ensuring transparency and accurate reporting of sales, which in turn contributes to the collection of the SST.
The SRB has warned that similar enforcement actions will continue against other restaurants and businesses that fail to meet their legal tax obligations. The Board has stressed the importance of compliance in maintaining a fair and transparent business environment, especially as it pertains to the hospitality sector, which is a key contributor to provincial revenue.
This action underscores the SRB’s commitment to upholding tax laws and ensuring that businesses operate within the legal framework, thus contributing their fair share to the Sindh treasury.
