ISLAMABAD: The Federal Tax Ombudsman (FTO) has asked the Federal Board of Revenue (FBR) to exercise extra care before sealing any business premises, after a shop in Karachi was sealed under a tax order issued against another taxpayer.
The matter concerned a shop at Saima Paari Mall in Hyderi, Karachi. According to the FTO order, the sealing order dated May 5, 2026, was issued against M/s Beejays Pret, NTN 2348594 9. However, the premises sealed belonged to M/s Beejays Fabrics, NTN 4782283 3, which was a separate registered taxpayer.
The FTO had earlier directed the concerned tax authorities to reopen the business premises and examine how an order issued for one taxpayer was implemented at the premises of another taxpayer. The office also observed that keeping a running business closed could create serious difficulties for the business and those associated with it.
During the review hearing held on September 23 and 24, the concerned Commissioner Inland Revenue informed the FTO that the shop had been reopened. The complainant confirmed that the main issue had been resolved and stated that he did not wish to pursue his claim for compensation.
The FTO observed that sealing a business is a serious action as it can halt business activity, affect workers and customers, and disrupt normal commercial dealings. It advised tax officials to ensure that the taxpayer named in the order, the taxpayer identification number, the premises, and the authority issuing the order all match before any sealing action is taken.
The FTO also withdrew its earlier recommendation for an inquiry into responsibility for the sealing, after the premises were restored and the complainant decided not to pursue compensation.
The Ombudsman has now recommended that the FBR issue instructions to its field offices to strictly follow the applicable rules and procedures while exercising the power to seal business premises. The case was disposed of after the reopening of the shop and resolution of the complainant’s immediate grievance.
