MIRPUR: KFC in Mirpur has been sealed by tax authorities in Azad Kashmir after a routine inspection uncovered significant violations of sales tax regulations. The popular fast-food restaurant was shut down following an investigation by the Inland Revenue Department, which found that KFC had been processing orders without charging the required sales tax.
In a routine inspection led by Inspector Mirza Luqman Jarral, who was acting on instructions from the Inland Revenue Commissioner, the inspection, carried out by the Point of Sale (POS) Task Force, revealed that KFC Mirpur billing system was not properly connected to the regional POS invoicing system, which meant that sales tax was not being applied to customer transactions.
Tax officials counted each invoice from the inspection and found none of them contained sales tax information. The tax authority sealed KFC Mirpur operations and will prevent its reopening until the company pays fines and fulfills tax standards in the region.
All businesses in Azad Kashmir including fast-food outlets such as KFC need to apply sales tax during transactions and maintain their invoicing system connected to the official tax verification mechanism of the government. Organisations that fail to obey regulations face fines therefore KFC experienced such consequences.
The authorities have not disclosed fine details or how long the restaurant will stay closed. Azad Kashmir authorities take violations of taxation laws seriously. The incident has brought public scrutiny to the government’s commitment for establishing tax enforcement and patient business accountability.
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