Tax irregularities: PRA seizes records of restaurants, cafés

LAHORE: The Punjab Revenue Authority (PRA) has seized the business records of several restaurants and cafés across the province following the detection of serious tax irregularities and non-compliance with provincial tax laws.

As part of its ongoing crackdown on tax evasion, the PRA conducted inspections of various hospitality businesses to ensure transparency and proper implementation of tax regulations. During the drive, enforcement teams confiscated records from multiple establishments including, restaurants, cafes and marquees in Lahore, Rawalpindi, Sargodha, Bahawalpur and Vehari.

According to PRA officials, initial scrutiny revealed discrepancies and possible embezzlement in tax payments. In numerous cases, businesses were found to have collected sales tax from customers without depositing it into the government treasury.

Enforcement officers have seized relevant documents and suspended system access for businesses operating outside the official Electronic Invoice Monitoring System (e-IMS) framework.

Officials further warned that strict legal action would be taken against entities found guilty of submitting false data or concealing sales records. They reiterated that withholding collected tax is a punishable offence under PRA regulations.

The Authority has already imposed heavy fines on violators and reaffirmed its commitment to ensuring full transparency and the mandatory use of e-IMS across all registered businesses.

Meanwhile, Punjab Finance Minister Mian Mujtaba Shuja-ur-Rehman in a meeting with Chairman PRA Muazzam Iqbal Sipra has said that those who evade taxes or misuse public funds don’t deserve any leniency. He said the government is determined to eliminate corruption from the tax system and expand the tax net.

The Minister further said that the assistance of PERA Force could also be sought to strengthen enforcement measures. He directed that the awareness campaign for the effective implementation of EIMS) be further expanded.

During the meeting, detailed discussions were also on held on the progress made under the tax reform agenda, proposed legal amendments, and enforcement measures. The Chairman PRA briefed the minister on the Authority’s performance, ongoing steps for transparency in the revenue system, and initiatives aimed at improving tax collection.

The Minister instructed enforcement officers to focus on broadening the tax base and to strengthen taxpayer confidence through strict control over irregularities and transparent practices.

The meeting also reviewed recommendations for taking onboard various industrial and commercial sectors in the tax awareness campaign.

Copyright Business Recorder, 2025