The Grand Tax Office (FBR) Federal Council (FBR) revealed a smuggling ring involved in lushing black money and tax evasion through the trading of luxurious watches, according to a report issued by a special TV channel.
The Grand Tax Office (LTO) raided three upscale outlets in Karachi, accusing them of massive tax evasion and violations of sales tax regulations.
FBR Outlet officials raided the luxury “Dolmen Mall”, Karachi, who seized the sales record and the entire arrow due to the lack of compliance with Point of Sale (POS).
Despite reporting only 65 million rupees in sales over three years, the actual market value of watches ranged between 2 million rupees to 10 million rupees each.
FBR sources indicated that the value of the declared shares was 40 million rupees, but actual sales were estimated at about 700 million rupees.
FBR’s investigation revealed that the majority of these luxurious watches entered Pakistan through smuggling and used as a means of laundering black money abroad. With the sales tax by 25 % applicable to these high -value elements, the estimated tax evasion of 700 million rupees in sales amounts to about 180 million rupees.
The authorities pledged strict measures against the participants in this tax fraud in billions of rupees and money laundering.
