ISLAMABAD: The Federal Tax Ombudsman (FTO) has advised the Federal Board of Revenue (FBR) to exercise greater caution before sealing business premises, after a shop in Karachi was sealed under a tax order issued against a different taxpayer.
The case related to a shop at Saima Paari Mall in Hyderi, Karachi. According to the FTO order, the sealing order dated May 5, 2026, had been issued against M/s Beejays Pret, NTN 2348594 9. However, the premises sealed belonged to M/s Beejays Fabrics, NTN 4782283 3, a separate registered taxpayer.
The FTO had earlier directed the relevant tax authorities to reopen the premises and look into how an order meant for one taxpayer was implemented at the business place of another taxpayer. The office observed that keeping an active business shut could create serious difficulties for the business and people linked 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 also confirmed that the main grievance had been addressed and stated that he did not want to proceed with the claim for compensation.
The FTO noted that sealing a business premises is a serious step as it can halt commercial activity, affect employees and customers, and disturb routine business 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 are properly matched before any sealing action is taken.
Following the reopening of the premises and the complainant’s decision not to pursue compensation, the FTO withdrew its earlier recommendation for an inquiry to fix responsibility for the sealing.
The Ombudsman has now recommended that the FBR issue instructions to its field offices to strictly follow the relevant rules and procedures while exercising the power to seal business premises. The case was disposed of after the shop was reopened and the complainant’s immediate grievance was resolved.
