Karachi, April 25, 2024 – The Sindh Revenue Board (SRB) has taken decisive action against tax evasion by sealing a prominent restaurant and an event management company in Karachi for violations of the Sindh Sales Tax on Services Act, 2011.
The crackdown underscores the provincial revenue authority’s heightened vigilance over compliance with tax regulations across service sectors.
In a press release issued Thursday, the SRB detailed the enforcement actions taken against M/s. Sajjad restaurant, a well-known eatery situated in the upscale locality of Do Darya in DHA Karachi, and M/s. Dawat, an event management company based in Khayaban-e-Bukhari, Phase-VI, DHA, Karachi. Both businesses were found guilty of underdeclaring their sales, leading to significant evasion of the Sindh Sales Tax and failing to file tax returns.
The SRB’s investigation into M/s. Sajjad restaurant revealed that the establishment had also neglected to integrate its Point of Sale (POS) systems with the SRB’s POS invoicing system despite repeated notifications and direct orders from the revenue authority. This integration is mandated under the current tax rules to ensure transparency and accuracy in reported sales.
“These enforcement actions were necessary due to the consistent non-compliance and evasion of tax obligations by these entities,” stated an SRB spokesperson. “Despite multiple advisories and notices, these businesses failed to rectify their discrepancies in tax reporting and payments.”
The sealing of these businesses is part of a broader strategy by the SRB to enhance tax compliance and prevent revenue losses from the non-compliant behaviors of service providers within the province. The SRB emphasized that similar measures would be implemented against other entities that disregard their tax duties.
“The SRB is committed to enforcing tax laws and regulations vigorously,” the spokesperson added. “We aim to create a fair tax environment where all service providers fulfill their obligations. This not only protects the integrity of our tax system but also ensures that public revenue is safeguarded.”
The actions against M/s. Sajjad restaurant and M/s. Dawat serve as a stern warning to other businesses in the service industry, including restaurants, cafes, caterers, and event organizers, about the serious consequences of failing to comply with tax laws. The SRB has expressed that it will continue its rigorous oversight and take necessary actions to ensure compliance across all sectors.
Local business communities and trade associations have taken note of the SRB’s recent enforcement drives, prompting discussions about the need for greater awareness and adherence to tax regulations. Many businesses are now seeking to better understand their tax obligations to avoid similar punitive actions.
As the SRB continues its efforts to clamp down on tax evasion, the economic landscape in Sindh is expected to see a shift towards greater transparency and compliance, contributing positively to the province’s financial stability and fairness in the business environment.
The SRB’s continued commitment to these enforcement actions highlights the importance of compliance within the tax framework and its role in fostering a just economic system where all contributors are held to the same standards.
