FBR seals eateries over tax evasion
The FBR has audited the company’s withholding tax deductions in the past. However, it is the first time that the FBR has decided to open the company’s books to see the complete details. Photo: REUTERS
The Federal Board of Revenue's (FBR) Islamabad Regional Tax Office (RTO) sealed two restaurants in the federal capital after discovering they were issuing fake receipts.
The action comes as part of FBR's efforts to bring tier-one retailers, including restaurants, into the tax net through its Point of Sale (POS) invoicing system and the newly launched POS Reward Scheme.
Led by Islamabad deputy commissioner, an RTO team verified forged receipts through POS tracking software before sealing the establishments, located in the Blue Area and Supermarket, and imposing fines of up to Rs0.5 million on each.
Launched on October 25, the POS Reward Scheme encourages consumers to report fake receipts via the Tax Easy app. Initially targeting tier-one restaurants in Islamabad, the scheme offers cash rewards to citizens who report fraudulent invoices, with prize money transferred directly to winners' bank accounts after verification. The scheme is set to expand to other retailers nationwide in the coming months.
The FBR's crackdown aims to reduce tax evasion and ensure that due taxes contribute to the national exchequer. An official said the department is committed to maintaining strict tax law enforcement and curbing the issuance of fake receipts.
It is worth mentioning that FBR started the POS Reward Scheme on October 25. In the first phase, the scheme was introduced in Islamabad, which will be extended to all tiers of retailers and then to the entire country next month.