3 luxury watches outlets sealed as new black money smuggling trick exposed

In a shocking revelation, luxury smuggled watches are being used as a new method to hide black money and transfer wealth abroad, 24NewsHD TV Channel reported on Wednesday.

In a major crackdown, the Federal Board of Revenue (FBR)’s Large Tax Office (LTO) raided three high-end branded watch outlets in Karachi, sealing them over massive tax evasion and violations of sales tax regulations.

FBR raids Dolmen Mall Karachi

During the operation, FBR officials raided a luxury watch outlet named “Collectibles” in Dolmen Mall, Karachi. The entire sales and stock record was seized due to non-compliance with Point of Sale (POS) regulations.

The outlets reported only Rs 65 million in sales over three years, while the actual market value of the watches ranged between Rs 2 million and Rs 10 million per unit.

According to FBR sources, the declared stock value was Rs 40 million only, whereas actual sales were estimated to be Rs 700 million.

Luxury watches used to evade taxes and transfer wealth

FBR officials have uncovered that most of these high-end branded watches enter Pakistan through smuggling and are being used as a tool to launder black money abroad.

Since a 25% sales tax is applicable on these high-value watches, the estimated tax evasion on Rs 700 million in sales amounts to approximately Rs 180 million.

Authorities have vowed strict action against those involved in this multi-billion rupee tax fraud and money laundering operation.

Reporter: Ashraf Khan