The Federal Board of Revenue (FBR) imposed fines of Rs1 million each on giant retailers in Islamabad including Tehzeeb Bakery and Metro Shoes.
Federal Board of Revenue (FBR) has taken major action in Islamabad, against Tehzeeb Bakers and Metro shoes.
(FBR) imposed this fine for not installing point-of-sale (POS) machines and for non-cooperation with the tax authorities.
Metro Shoes, a major shoe store has been fined Rs1 million for not allowing the installation of POS machines at 40 outlets across 24 cities of the country.
The failure to install POS machines has made it difficult for the FBR to determine the exact amount of sales tax.
FBR has also imposed a fine of Rs1 million on one of the most famous and biggest bakery chains of Islamabad and Rawalpindi, Tehzeeb.
The management of Tehzeeb Bakery did not allow the Federal Board of Revenue to install point-of-sale machines resulting in an inaccurate assessment of sales tax as the exact amount of sales made by the bakery could not be evaluated.
FBR faced difficulty determining the exact amount of sales tax due to the non-cooperation from the Tehzeeb bakery management.
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The Federal Board of Revenue officials told News360 that Metro Shoes and Tehzeeb Bakery were not charged for tax evasion.
However, they added that the non-installation of POS machines is a criminal offense and the businesses could be charged for alleged tax evasion.
This major operation was carried out by the officials of Large Tax Payers Unit (LTU) in the city of Islamabad as part of its action against the big businesses in Islamabad possibly involved in tax evasion.