Islamabad – In a startling revelation, the Federal Board of Revenue (FBR) has unearthed a major case of alleged corruption and regulatory negligence, where a blacklisted cosmetics company involved in massive tax evasion was illegally granted a license by the Pakistan Standards and Quality Control Authority (PSQCA). The company’s products, despite being declared illegal, are reportedly freely available in markets across Pakistan.
This case has highlighted serious gaps in regulatory compliance, exposing how alleged collusion between company representatives and regulatory officials has allowed tax defaulters to operate with impunity, raising questions about transparency and accountability in government agencies.
Crackdown on Tax Evaders Intensifies Nationwide
FBR Strengthens Enforcement Actions Against Defaulters
As part of its countrywide initiative to tighten enforcement against tax evasion, the FBR has issued directives to Large Taxpayer Units (LTOs), Regional Tax Offices (RTOs), and Corporate Tax Offices (CTOs). The aim is to ensure that companies involved in tax evasion are held accountable, and their operations halted until full compliance is ensured.
In this specific case, the blacklisted cosmetics company, operating under the trademark “Bio Amla”, was previously deregistered and blacklisted for defaulting on over Rs 570 million in taxes. Despite this, PSQCA’s Peshawar office issued the company a fresh license, bypassing mandatory clearances from the FBR.
Details of the Case: A Blacklisted Company Operating Illegally
Company Blacklisted for Rs 570 Million in Tax Evasion
According to official documents, the FBR has determined that the blacklisted cosmetics company owes Rs 570 million in unpaid taxes, including penalties and surcharges. The Supreme Court of Pakistan has upheld the tax assessments issued against this company, confirming the validity of the FBR’s actions.
The company’s directors are currently in jail, its business operations have been suspended for years, and its sales tax registration has been officially cancelled and blacklisted. However, despite this status, products under the same brand name (Bio Amla) are being stocked, sold, and distributed across major retail outlets in Lahore, Peshawar, and other cities.
FBR’s Official Directives to PSQCA
Immediate License Cancellation Ordered
The FBR has formally instructed the PSQCA’s Peshawar office to immediately cancel the license granted to the blacklisted company. The letter clearly states that:
“The manufacture, stocking, and sale of this company’s products—or those using the Bio Amla trademark—is declared illegal. PSQCA must not issue any new license or renew existing ones under this or any similar brand name.”
Additionally, the FBR stressed that no license should be issued to any third party attempting to use the same trademark, unless the full amount of outstanding taxes is cleared and prior approval from FBR and the trademark authority is obtained.
Alleged Collusion Between PSQCA Officials and Tax Evaders
License Issued Without Clearance
In a troubling twist, sources within the Corporate Tax Office Lahore have revealed that some PSQCA officials allegedly colluded with representatives of the blacklisted company to secure a license without informing senior authorities or the FBR.
A special investigative team, led by Deputy Commissioner Inland Revenue Muhammad Qamar Minhas, has been constituted to probe the matter. The team has already issued official letters to PSQCA, requesting immediate cancellation of the license and an explanation for the regulatory breach.
Legal and Regulatory Violations
Trademark Misuse and Lack of FBR NOC
The letter from the FBR also highlights a misinterpretation of a “coalicense” order, which allegedly allowed the company to operate without necessary regulatory approvals. The authority made it clear that no entity is allowed to manufacture, distribute, or sell any product under the “Bio Amla” trademark or similar names unless they receive a no-objection certificate (NOC) from FBR.
The lack of coordination between tax and standards authorities, combined with alleged internal corruption, has enabled the illegal circulation of unlicensed and potentially non-compliant products.
Deadline Given for Compliance
Company Ordered to Submit Documentation Within 7 Days
PSQCA has given the company a seven-day deadline to provide the following documents:
- FBR clearance certificate
- Valid sales tax registration
- Recent income tax returns
- Proof of tax payments
- Certified compliance documents related to the Bio Amla trademark
Failure to comply will result in immediate legal proceedings, including product confiscation, license revocation, and possible criminal charges.
Expanding the Investigation
Similar Crackdowns in Karachi, Lahore, and Beyond
The FBR has expanded its investigation to include other cities such as Karachi, Lahore, and Islamabad, where it suspects similar license issuances to blacklisted firms. A nationwide crackdown is underway to identify and penalize all businesses evading taxes while continuing commercial operations through regulatory loopholes.
This follows directives from Sadia Sadaf Gilani, Chief Commissioner of the Corporate Tax Office in Lahore, who is closely monitoring the case and ensuring swift action against non-compliant entities.
PSQCA Internal Probe Launched
Inquiry into Officials Behind Illegal License Issuance
Following public criticism and internal pressure, PSQCA’s top management has launched an internal inquiry to determine the officials responsible for issuing the license without mandatory checks. Sources suggest that disciplinary action and legal proceedings will be taken against those found guilty of violating licensing protocols.
There is growing concern that similar incidents may have occurred in the past, and this case could expose a broader network of internal corruption within regulatory bodies.
Public Health and Consumer Safety at Risk
Unverified Products Available in Market
The availability of unlicensed cosmetic products in the open market raises concerns about product safety, quality control, and consumer health. Without PSQCA oversight and proper regulatory approvals, these products could pose serious health risks, especially in sectors like skincare and personal hygiene.
The FBR has urged consumers and retailers to avoid purchasing or distributing products under the Bio Amla brand and to report any instances of non-compliance to relevant authorities.
Conclusion: A Call for Inter-Agency Coordination and Regulatory Reform
This incident has brought to light serious flaws in Pakistan’s regulatory and enforcement systems. Despite court orders, tax assessments, and blacklisting, the ability of a company to resume operations illegally underscores the urgent need for inter-agency coordination between FBR, PSQCA, and trademark authorities.
The FBR’s firm stance and recent actions signal a new phase in Pakistan’s fight against tax evasion and corruption. However, sustainable progress will depend on accountability, transparency, and institutional reform across all regulatory bodies.
