Pakistan

Fashion design outlets sealed for non-payment of taxes

PRA spokesman says Zara Shahjahan, Mini Bindra and Sania Maskatiya outlets among those sealed

Our Correspondent September 03, 2015

LAHORE: The Punjab Revenue Authority (PRA) sealed several fashion outlets in Gulberg and Defence Housing Authority areas of Lahore on Thursday for non-compliance.

A PRA team, headed by Additional Commissioner Ayesha Ranjha sealed 13 fashion design outlets in the city for non-payment of taxes.

A PRA team, headed by Additional Commissioner Ayesha Ranjha, sealed the Zara Shahjahan, Mini Bindra, Sania Maskatiya, Nida Azwer, Ayesha Imram, Shirin Hassan and Ammar Belal outlets as well as six others, a PRA spokesperson said.

Read: Maria B accuses Indian textile house of plagiarism

The spokesperson added that the PRA had been in contact with the fashion designers for over a year regarding tax collection on their services.

The sealed outlets owe Rs80 million tax to the authority, he said.

Last month, the PRA in its on-going drive for General Sales Tax (GST) collection on services sealed a number of fitness centres for non-payment of the tax.

According to a press release, PRA officials sealed Oxygen Gym and Convert Fitness in Z Block DHA, Vigour Gym, Genesis, Azhar Fitness Centre and Synergy Health Fitness in Jauhar Town. The PRA officials also met resistance when they went to seal Convert Fitness and Azhar Fitness Centre, the press release said.

Read: Punjab Revenue Authority seals gyms

Further, following the imposition of Section 59 by commissioner PRA, officials conducted complete monitoring of two eateries in the Gulberg area. A team of PRA has been stationed at Faridi Café to monitor sales and to compare findings with GST payments.

PRA believes that the steps will lead to a reduction in tax evasion.

Correction: An earlier version of the article erroneously stated Khadijah Shah's an BBQ Tonight stores was among those sealed. The error is regretted. EDITOR.

Published in The Express Tribune, September 4^th, 2015.

COMMENTS (16)

Brar | 8 years ago | Reply @Lolz: I watched a tv programme where Mr. Malik was being interviewed by Salim Safi, Mr Safi asked him a direct question did you pay rishwat to Govt officials and his reply was yes I do because if you want to do business you will have to do it and it is truth for our countries.our policians and beurocates all are corrupt.

Karim | 8 years ago | Reply Breaking the law is unacceptable, and for that these business owners should get fined and punished. But at the same time, every country has tax laws to encourage small upcoming businesses. For example the US has the Section 1202 capital gains exemptions for qualified small businesses (less than $50 million in assets). The UK has similar rules. I think after paying appropriate fines, these entrepreneurs should get similar sort of tax relief from the FBR. The economics are simple - virtually all job growth comes from small businesses. They are plain and simple the the future of Pakistan

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Atheist_Pakisani | 8 years ago | Reply This is so wrong in so many fronts!. Why are these people going after small mom and pop businesses? Why don't they try probing billion dollar companies of elite families in Pakistan like owners of Gul Ahmed, Nishat weghra? Why should the small business pay tax?

Mobs | 8 years ago | Reply Pakistanis, understand something before its too late. Stop acting like a mob, and stop assuming stuff. Pakistanis are busy cheering on the govt when it seals down a business, however we do not ever hear the other side of the story. The government should simplify the tax rules in place. The government should start by ensuring the bureaucrats and the MNA/MPAs pay their taxes accordingly. Kindly start from yourself, or people will always find loopholes.

Arshad | 8 years ago | Reply The step is good but why mill owners,industralist, importers and feudal lord are untouched yet?

Azmat Ali | 8 years ago | Reply It is my opinion that if the PRA places one person at every retail location, clinic, factory and trading office, the tax collection forced out of these places will be far greater than the cost of hiring that one individual. Imagine the dramatic reduction in unemployment amongst the barely employable graduate community. These establishments will be forced to either pay the government or to these "officers". Either way, this works for me. Sounds like a plan. Any takers?

Lolz | 8 years ago | Reply @Adil Saeed: Worthy? Really? You let a cactus grow for years, nurture it and then let it hurt people around until one day you cut it down suddenly to take credit! Have you ever read about Consistent Policies? Taxing is important but without consistent taxing policy such acts are no different then bribery and bhatta wasooli! These aggressive measures show how frustrated is Ishaq Dar over the financial situation of this country even though they have been ruling this country for third term now! Do they dare to ask sugar mills or real estate tycoons to pay taxes? NEVER! PML-N always believe in selective justice!

Ishrat salim | 8 years ago | Reply Good work, late but never too late, it is. Better to be late than never.keep it up, such action should be done against all and sundry. These outlets and businesses like retail shops etc prices include taxes but are never deposited in the govt treasury, so, it is a good step.

Adil Saeed | 8 years ago | Reply @Jalal: Stop being biased always.People like you need to digest work that is worthy instead. For you kind information Itefaq foundry production is already halted since years

telmeez | 8 years ago | Reply this is not good way

Parvez | 8 years ago | Reply Well...they have to start somewhere....BUT why is it always with the small fish ?

F | 8 years ago | Reply PRA is responsible for collecting taxes on services and not products. The untrained officers of PRA apparently doesn't know the difference. The shops had to be unsealed later in the day because they had no jurisdiction.

Haris | 8 years ago | Reply Taxes should be paid in order to contribute economy No excuse

Jalal | 8 years ago | Reply Has Itefaq Foundry been closed too?

Aam Admi Bechara | 8 years ago | Reply Too Late BUT Still a Welcome Move They are robbing people and fleecing them like robbers without paying their due taxes for far too long

Sara | 8 years ago | Reply Great step! :)

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