A few days ago, over a dozen members of the tax authority raided Islamabad’s largest bookstore. They showed a notice to the manager at the front desk stating that they were sealing the place. Within minutes, they escorted customers to the exit and locked the store.
Located in Jinnah Super Market, the bookstore is one of the main attractions for diplomats, tourists, and local bibliophiles due to its diverse collection of books. The sudden action came as a shock. “There was no advance notice. Suddenly, over a dozen tax authority team members entered the store and expelled us, saying they were sealing it. Then, they shut down the store,” the store manager said.
Later, according to the manager, he received a call at night informing him that the store was being de-sealed.
The regional office of the Federal Board of Revenue (FBR) raided this decades-old bookstore and sealed it for not having a point of sales (POS) machine — a demand the store manager claimed was not relevant to the bookstore category. POS machines are directly linked to the FBR and record sales of major restaurants, outlets, stores, etc., to monitor discrepancies in reported sales and tax deposits.
The outlet was reportedly de-sealed on the instruction of Prime Minister Shahbaz Sharif. The FBR declined to comment on the matter.
“The raid was made over the POS machines,” a senior officer of the regional tax office said on the condition of anonymity. “Only high-ups know what happened later on.” The officer mentioned that the store sells several products besides books, such as stationery but refused further comment.
The store owner said they were already contesting a notice regarding the POS machine. “My lawyer had already clarified that books and stationery items are exempt under the Sixth Schedule of the Sales Tax Act and, therefore, the store did not fall under mandatory registration for the POS machine.”
He expressed disappointment, stating, “The FBR’s action was disheartening. The book reading habit is already in decline, and libraries are vanishing.” According to the store staff, there has been a sharp drop in customers—over 50 percent in recent years.
The bookstore was sealed over a minor compliance issue, not any established tax evasion. The FBR had sent a notice regarding the installation and registration of the machine three months ago. The store management responded by claiming it did not fall into the mandatory category.
The incident elicited mixed reactions from book lovers and customers. Most agreed that the abrupt sealing of such a business without prior notice tended to tarnish the authority’s image.
“There should be no tax evasion by any business. Equally, there should be no harassment by the authorities. Such actions by the tax authority are not good,” said Muhammad Waqar, a regular customer.
Some people found the de-sealing of the store—if prompted by social media pressure—equally strange. They questioned the way the system was being run.
“There must be action against the regional tax authority if the sealing was wrong. If the action was lawful, then the de-sealing raises questions about transparency,” said Muhammad Abbas, another customer.
Saeed Book Bank, the largest bookstore in town, has been in the headlines due to declining business and related issues. The owner closed an old showroom in Peshawar some years ago due to the law and order situation. The store also shut a branch in F-11 in 2019 following a drop in revenue.
“We are continuing this business as a proud family legacy. We are not making much from it,” Ahmad Saeed, son of the founder and current owner, told The News on Sunday.
“The book business is already on the decline. The government should support such efforts and encourage these rather than taking such actions,” he added.
According to Saeed, books do not fall under the Sales Tax law category requiring POS machines. “I don’t know why the tax authority sealed the store the other day,” he said, warning that if the business environment continues to deteriorate, he may be forced to wind up the business.
Islamabad has already seen the closure of notable bookstores like London Books and Durrani Books. A couple of other famous bookstores are also facing losses and a decline in customers, said book reader Ishtiaq Ali.
He emphasized, “Governments should support such businesses.”
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*This incident highlights challenges faced by longstanding cultural businesses amid evolving tax regulations, underscoring the importance of clear policies and supportive governance.*
https://www.thenews.com.pk/tns/detail/1345124-a-mystery-for-the-books
