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 the 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. This sudden action came as a shock to many. “There was no advance notice. Suddenly, over a dozen tax authority members entered the store and expelled us, saying they were sealing it. Then, they shut down the store,” said the store manager.
Later that night, according to the manager, he received a call 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, and stores. This system helps monitor discrepancies in reported sales and tax deposits.
The outlet was reportedly de-sealed on the instruction of Prime Minister Shahbaz Sharif. The FBR, however, declined to comment on the matter.
A senior officer from the regional tax office, speaking on condition of anonymity, confirmed that the raid was related to the POS machines. He added that the store sells several products besides books, such as stationery items. However, he refused to respond to further questions.
The store owner stated that they were already contesting a notice regarding the POS machine. “My lawyer had 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 said.
He described the FBR’s action as disheartening. “The book reading habit is already in decline, and libraries are vanishing,” he added.
According to store staff, there has been a sharp decline of over 50 percent in customers in recent years. The bookstore was sealed over a minor issue and not due to any established tax evasion. The FBR had sent a notice regarding the installation and registration of the POS machine three months prior. The store management responded by claiming it did not fall within the mandatory category.
The incident elicited mixed reactions from book lovers and customers. Most people agreed that abruptly sealing 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 customer of the store.
Some observers noted that the de-sealing of the store, possibly influenced by social media pressure, was also unusual. “We wonder at the way the system is being run. There must be action against the regional tax authority if the sealing was wrongful. 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 frequently due to declining business and related challenges. The owner closed an old showroom in Peshawar some years ago because of the law and order situation. The store also closed 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,” said Ahmad Saeed, the son of the founder and current owner, in an interview with The News on Sunday.
He added, “The book business is already on the decline. The government should support such efforts and encourage them rather than taking such actions.”
According to Ahmad Saeed, books are exempt under the Sales Tax law, so he does not understand why the tax authority sealed the store.
He further cautioned that if the business environment continues to deteriorate, he may be forced to wind up operations.
Islamabad has already witnessed the closure of London Books and Durrani Books. A couple of other famous bookstores are also facing losses and declining customer numbers, said book reader Ishtiaq Ali.
He emphasized, “Governments should support such businesses to preserve the culture of reading and accessibility to books.”
https://www.thenews.com.pk/tns/detail/1345124-a-mystery-for-the-books