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 directed 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. The sudden closure 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 that night, according to the store manager, he received a call informing him that the store was being de-sealed. The regional office of the Federal Board of Revenue (FBR) had raided this decades-old bookstore and sealed it for not having a point of sale (POS) machine—a demand the store manager claimed was not relevant to the bookstore category.

POS machines are directly linked to the FBR. These devices record sales of major restaurants, outlets, and stores to monitor any discrepancies in reported sales and tax deposits. The outlet was reportedly de-sealed following instructions from Prime Minister Shahbaz Sharif. The FBR declined to comment on the matter.

A senior officer from the regional tax office, speaking on condition of anonymity, said the raid was related to the POS machines. “Only high-ups know what happened later on,” he added. The officer mentioned that the store sells several products besides books, such as stationery, but refused to respond to further questions.

The store owner explained that they were already contesting a notice regarding the POS machine. He said his 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.

“The FBR’s action was disheartening. The book reading habit is already in decline, and libraries are vanishing,” he said. According to the store staff, there has been a sharp drop of over 50 percent in customers in recent years.

The bookstore was sealed over a minor issue, not because of established tax evasion. The FBR had sent a notice regarding the installation and registration of the machine three months ago. The store management had responded by claiming it did not fall into the mandatory category.

The issue elicited mixed reactions from book lovers and customers. Most agreed that the abrupt sealing of such a business without prior notice tends 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 people found the de-sealing of the store—if it was based on social media pressure—strange. “They wondered at 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 the question of transparency,” said Muhammad Abbas, another customer.

Saeed Book Bank, Islamabad’s largest bookstore, has been in headlines lately due to declining business and related issues. The owner closed an old showroom in Peshawar several years ago due to the law and order situation. The store also shut down 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, the son of the founder and current owner, told The News on Sunday. “The books business is already on the decline. The government should support such efforts and encourage these rather than taking such actions.”

He added, “According to the Sales Tax law, books do not fall in the category. I don’t know why the tax authority sealed the store the other day.” He further mentioned that if the difficult business environment continues, he may be forced to wind up the store.

Islamabad has already seen the closure of 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 urged, “Governments should support such businesses.”
https://www.thenews.com.pk/tns/detail/1345124-a-mystery-for-the-books