ISLAMABAD: The makers behind Pakistan’s iconic shampoo brand, Bio Amla, are on the brink of having their properties auctioned as part of an effort to recover outstanding tax payments.
This auction, to be conducted by the Federal Board of Revenue (FBR), marks a historic first in the board’s history.
The upcoming auction concludes a lengthy pursuit by the FBR targeting the directors of Forvil Cosmetics Pvt Ltd.
As per the details, the company is responsible for producing the renowned black shampoo bottle that has been a household name in Pakistan since the early 1980s.
According to sources, the auction is scheduled for August 21st of this year.
The investigation into Bio Amla’s manufacturers was initiated in 2017, following reports of significant under-invoicing.
In response, the FBR engaged the Intellectual Property Organization (IPO) to halt the transfer, sale, or sub-leasing of copyrights, trademarks, patents, etc., associated with Bio Amla and other products due to outstanding sales tax defaults.
Due to alleged tax evasion and private ownership, the FBR has subjected both the company and its owners to intensive scrutiny and in December 2022, the FBR initially moved to auction the properties.
It was also revealed that Zakauddin Shaikh, Zunir Ahmad, Khalida Parveen, and Wamiq Zaka, listed as directors of Forvil Cosmetics, were defaulters of sales tax amounting to Rs 310.7 million along with default surcharge.
As these defaulters have failed to remit their tax liabilities, their immovable properties have been seized for sale to recover government dues.
The details also suggest that all bidders must clarify whether they are bidding on their behalf or on behalf of others, and if the latter, they must provide authorization to bid.
The outstanding government dues, including penalties and default surcharges, amount to nearly Rs 570 million for the aforementioned defaulters and company directors.
Additionally, the company’s sales tax registration number has also been suspended.
Officials view this unprecedented move as a historic step that aims to discourage tax evasion and boost FBR’s tax revenue.
Source: Profit
