In a move to enforce tax compliance, the Regional Tax Office (RTO)-1 Karachi sealed three major retail outlets on Tariq Road for violating Point of Sale (POS) integration rules. The action, carried out on Tuesday, targeted businesses failing to comply with requirements for real-time sales reporting.
Tariq Road, a major commercial hub in Karachi, saw enforcement actions taken against a well-known fashion designer outlet, a children’s toy store, and a household goods store. All three were sealed for issuing receipts disconnected from the FBR’s POS system, according to an official statement from RTO-1 Karachi.
The operations fell under the jurisdiction of RTO-1 Karachi Zone 3 and were conducted under Rule 150ZEO of the Sales Tax Rules, 2006. This rule mandates integration of Tier-1 retailers with the FBR’s POS system.
Chief Commissioner Dr. Faheem Muhammad praised the RTO-1 Karachi team for their swift action. “Ensuring compliance with POS regulations is essential for transparent business practices,” he stated, adding, “Our team’s dedication in sealing three outlets in one day demonstrates our resolve against violations.” He directed officials to intensify these operations in the coming days.
The crackdown follows recent amendments to the Sales Tax Rules via SRO 164(I)/2025. These changes empower tax authorities to seal any retail outlet issuing unverified invoices or disconnecting from the POS network for more than 48 hours. Retailers are also now required to upload offline sales records within 24 hours of reconnection. Non-compliance will result in sealing of the premises.
Previously, action was only authorized after three unverified invoices in a day or five in a week. The lowered threshold reflects a more aggressive approach to combating tax evasion.
RTO-1 Karachi reaffirmed its commitment to ensuring all retailers comply with POS integration rules to support transparent tax collection and strengthen Pakistan’s financial system.
