Peshawar’s cosmetic firm: FBR orders licence cancellation for alleged tax evasion

ISLAMABAD: The Federal Board of Revenue (FBR) has taken a major enforcement action against a cosmetic company of Peshawar for alleged tax evasion and also ordered licence cancellation and declared production, stocking and sales of its products as illegal.

In a decisive move to crack down on tax evasion, the FBR has intensified enforcement actions across the country through its Large Taxpayer Offices (LTOs), Regional Tax Offices (RTOs), and Corporate Tax Offices. The FBR has also directed its field formations to maximize enforcement actions during June 2025 to meet the assigned targets.

Acting on the FBR directive, the Pakistan Standards and Quality Control Authority (PSQCA) in Peshawar has been formally instructed to immediately revoke the manufacturing license issued to M/s Forvil Cosmetics a company blacklisted for allegedly evading taxes to the tune of millions.

The FBR has not only declared the production, storage and sale of this company’s products illegal but has also prohibited any other firm or third party from manufacturing, stocking, or selling goods under the trademark “Bio Amla” or any similar name. The banned products include Bio Amla Shampoo, Bio Nikhhar Cream, Seven Day Cream, Prima Hair Color among others.

According to official documents, the FBR has explicitly directed PSQCA to neither issue a new license nor renew any existing one under the said brand, including any entity associated with Forvil Cosmetics. Following these instructions, PSQCA Peshawar has given the company a seven-day deadline to submit a clearance certificate from FBR, valid sales tax registration, recent income tax returns, proof of tax payments, and certified compliance documents. Failure to comply will result in legal action, PSQCA letter said.

In a letter sent to PSQCA, the FBR revealed that Forvil Cosmetics registered in Peshawar. The case is also under investigation by the Directorate General Intelligence & Investigation - Inland Revenue.

Sources confirmed that the FBR has launched similar crackdowns on tax defaulters in other cities including Karachi and Lahore. In Lahore under the supervision of Chief Commissioner of Corporate Tax Office it was discovered that certain PSQCA officials may have colluded to issue a license to the blacklisted company without securing necessary recovery or informing higher authorities. In response a special team led by Deputy Commissioner Inland Revenue Muhammad Qamar Munhas was formed, which promptly wrote to PSQCA and recommended canceling the license issued for the seized trademark.

The FBR documents show that the company owes Rs. 570 million (including surcharge and penalties) as of October 2022. The Supreme Court of Pakistan has upheld the assessment order issued against the company.

The company has ceased operations for several years. Its sales tax registration has also been canceled and blacklisted.

Copyright Business Recorder, 2025