KARACHI: The Medium Tax Office (MTO Karachi) has sealed an outlet of Divago, a prominent pharmacy chain in Pakistan, due to its failure to integrate its Point of Sale (POS) system with the Federal Board of Revenue (FBR).
According to officials at MTO Karachi, the action was taken against the Divago outlet located at Jail Chowrangi, Shaheed-e-Millat Road, following repeated violations of mandatory POS integration laws. The operation was conducted after a thorough investigation revealed that Divago was not connected with the sales tax invoices, violating the FBR’s digital reporting system. This lack of compliance resulted in substantial revenue losses to the national exchequer.
MTO Karachi, a key revenue-collecting arm of the FBR, emphasized that all Tier-1 retailers are legally required to integrate their invoicing systems with the FBR’s centralized POS system. This system is designed to capture real-time transaction data, ensuring transparency and reducing the scope for tax evasion. Despite these requirements, Divago failed to comply, triggering swift action from tax authorities.
The sealed Divago outlet will remain closed until it settles all outstanding sales tax dues and fully integrates its POS system with the FBR Dashboard. Authorities have made it clear that reopening will only be permitted once full compliance is achieved.
This enforcement effort by MTO Karachi serves as a stern warning to other businesses that continue to flout tax laws. With recent amendments to sales tax regulations, tax bodies now possess stronger authority to seal non-compliant outlets and curb fraudulent activities related to POS manipulation.
MTO Karachi has reiterated its commitment to continue operations against defaulters. The message is loud and clear: retailers like Divago must embrace tax compliance or face serious consequences. By cracking down on such violations, MTO Karachi aims to foster a culture of accountability and contribute to a more transparent retail environment across Pakistan.
