In a sweeping action that jolted the fashion industry, the Federal Board of Revenue (FBR) has accused popular clothing brand Sowears of evading over Rs 100 million in taxes and sealed four of its major outlets across Karachi.
According to the FBR, the brand was involved in concealing income, running undisclosed overseas businesses, and deliberately avoiding the integration of its Point of Sale (POS) system with the FBR since 2018—resulting in major losses to the national treasury.
As part of the operation, outlets in Lucky One Mall, Dolmen Mall, Ocean Mall, and Saima Mall were shut down. The FBR also raided the brand’s factory located in the SITE industrial area and confiscated key business records and digital evidence.
Initial investigations revealed that Sowears was conducting unreported business in Dubai and the United States. The FBR suspects that the brand funneled its income into secret bank accounts and shell companies abroad, raising serious concerns about money laundering.
The case is now under detailed investigation under the Income Tax Ordinance and other relevant financial laws.