MIRPUR (Kashmir English): Azad Kashmir tax authorities sealed KFC Mirpur after discovering sales tax violations during a routine inspection, leading to its closure until a fine is paid.
The Inland Revenue Commissioner of Azad Kashmir has taken action against KFC Mirpurpur over alleged sales tax irregularities. On the commissioner’s directive, the Inspector of the Tax Department, Mirza Luqman Jarral, led an operation to seal the fast-food outlet.
The enforcement move came after the Point of Sale (POS) Task Force conducted a routine inspection of KFC Mirpur’s billing system. During this check, tax authorities discovered that online bills and orders were being processed without applying sales tax.
Under sales tax law, all fast-food chains, including KFC, are required to charge sales tax on their transactions and ensure that their invoicing system is linked with Azad Kashmir’s POS invoicing system. This system is designed to record and verify tax compliance, ensuring that the collected tax is duly deposited into the government’s treasury.
According to the tax officials, every invoice examined during the inspection showed that sales tax had not been applied. This non-compliance led to immediate action, and the restaurant was sealed until further notice. The authorities have made it clear that KFC Mirpur will remain closed until the imposed fine is paid and the necessary tax compliance measures are implemented.
The incident demonstrates how Azad Kashmir’s tax authorities continue their work to manage business operations while enforcing tax law compliance. The Inland Revenue Department follows active monitoring of businesses to prevent tax evasion and tax all entities into their formal tax system.
The enforcement action against KFC for tax irregularities at their international establishments has received wide recognition from the public. The incident functions as a powerful warning for all regional companies that non-compliance with tax laws will result in immediate closure due to strict enforcement policies.
Local authorities have not revealed both the penalty amount and the sealing period of the restaurant. The incident shows that the government takes firm steps to execute tax regulations alongside protecting business compliance with legal requirements.
