The Federal Board of Revenue (FBR) has filed a first information report (FIR) against prominent fashion designer Nomi Ansari, accusing him of evading sales tax amounting to over Rs1.2 billion. Ansari has contested the charges in the Sindh High Court (SHC), which has since barred the FBR from taking any coercive action against him and summoned the officials involved to explain their actions on May 23.
The FIR, lodged on April 18 in Karachi, states that Ansari, who owns and operates his namesake fashion label, is being charged under Section 2(37) of the Sales Tax Act, 1990, for committing tax fraud. According to Ansari’s petition, the FIR contradicts a prior interim court order and lacks legal standing.
In addition to the primary tax fraud charge, Ansari is accused of violating several provisions of the Sales Tax Act related to non-compliance with tax filings, improper documentation, inaccurate records, and underreporting of business activity. These include Sections 3, 6, 7, 8, 8A, 11E, 22, 23, 26, and 73, and may carry further penalties under Sections 33(2), 33(5), 33(11), and 33(13), dealing with issues like fake invoices, unreported income, and the use of false documents.
Three other individuals — Hussain Kazmi, Syed Ali Massum Naqvi, and Imran Musel — were also named in the case.
The FIR alleges that Ansari significantly underreported his sales and submitted tax returns that showed no corresponding purchase data, which raised red flags. It further claims that he provided misleading business information and failed to document several foreign remittances and large cash transactions, which were uncovered through banking channels.
Acting on these findings, the FBR conducted raids at three of Ansari’s business locations on February 20 after securing search warrants. One of the raided sites — a manufacturing unit in Karachi’s Mehran Town — was reportedly undeclared in his official business documentation.
The FBR claims to have seized documents during the search that indicate a much larger volume of business than what was officially reported, as well as records of substantial cash deposits made under the names of his staff members. These findings are now part of the ongoing investigation, with the FBR pursuing prosecution under Section 37A of the Sales Tax Act.
