Restaurants are Evading Billions in Taxes in Islamabad: Report

Several media reports have revealed that almost all the restaurants in Islamabad have been evading taxes worth billions of rupees.

The Federal Board of Revenue (FBR) had introduced a restaurant invoice monitoring system (RIMS) to determine the actual values of the restaurants’ sales in real time. The department has stationed teams in different restaurants for this purpose.

Reportedly, the teams noticed that after the RIMS was installed, some restaurants stopped showing sales for several days while many of them kept their system offline throughout the day, uploading a few invoices at midnight.


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The restaurants are charging up to 17 percent sales tax from the customers but they don’t transfer the amount to the tax department.

Meanwhile, All Islamabad Restaurants Association (AIRA) has called for a strike on April 23. Over 250 restaurants in Islamabad will remain closed on the said date. They cited alleged harassment by the FBR as a reason for the protest.

According to the AIRA, FBR has been squeezing the existing taxpayers instead of expanding the tax base. State Minister for Revenue Hammad Azhar has taken notice of the protest, asking the restaurants to call off the strike.

He assured them that the government will listen to their issues.

Via Profit

  • Yes, and then we moan about how the hell has the Government failed to deliver! It’s also us who steal taxes, drive Mercs around Islamabad just like it’s our own hard-earned money!
    Hidden mafias getting exposed big time here!

  • Restaurant Owner should be arrest & recover all the amount by his account otherwise sale the property & recover the amount.

  • squeeze the culprits and recover the due taxes.
    dont let them black mail by strikes. people wont
    eat out for sometime…. so what. economy matters
    at present.

  • Its all here too; can you recall even single restaurant gave you legit slip of your order payment…. arrest all these and take all the dues..

  • Restaurants are evading sales tax all over the country especially in big cities like Karachi, Islamabad, Peshawar, Faisalabad, etc.. Many of them only accept Cash to avoid documentation and do not issue an invoice.

  • Its easy, catch the people who own 3 crore+ PKR cars which are mostly bought through these tax evasions

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