The Federal Board of Revenue (FBR) has sealed three high-end watch outlets in Karachi following investigations that revealed significant tax evasion and non-compliance with mandatory Point of Sale (POS) systems.

According to FBR officials, the sealed businesses had declared inventory worth only Rs. 40 million, while financial records indicated actual sales reaching approximately Rs. 700 million. With luxury watches subject to a 25 percent sales tax, authorities estimate the tax liability at around Rs. 180 million.

“We have seized all business records from these establishments and will pursue strict action against these tax evaders,” an FBR spokesperson said. The operation is part of the revenue authority’s broader crackdown on tax non-compliance in the luxury retail sector.

This enforcement action follows a major investigation last year that uncovered a Rs. 3.7 billion tax evasion scheme involving duty-free goods intended for Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA). That audit revealed imported goods, which were exempt from taxes when sold in designated areas, were being illegally diverted to other markets in violation of customs regulations.