Tehzeeb bakers and metro shoes both have been fined Rs. 1 million by the Large taxpayers office (LTO) of the federal board of revenue (FBR).
The retail outlets of both had failed to meet then Point of sale system of FBR which led the FBR to impose a heavy amount fine on both retail brands.
Point of sale incorporation is compulsory for all major retailers of the country, as recommended under the Sales Tax Act 1990, which ensure proper sharing of sales with FBR and leads to tax collection in a rightful way.
With around 40 outlets all over Pakistan, Metro shoes is one of the biggest shoes and bags brand for ladies whereas Tehzeeb bakers is a name quite famous in the premises of Islamabad and Rawalpindi with eight branches in total over there.
Both of these brands come under the tier-1 category according to the law of sales tax.
All the branches of both brands were supposed to be connected with the Federal board of revenue’s, point of sale system so that their sales could be constantly monitored for tax collection. FBR had sent both of these retailers several notices and notifications regarding the matter but no response was received from either side after which now the FBR has decided to impose this large fine.
