Authorities begin sealing KFC outlets across Lahore

The Punjab Revenue Authority (PRA) has sealed several branches of fast-food chain KFC in Lahore over alleged non-compliance with tax regulations, according to official sources.

At least five KFC outlets were sealed during the enforcement action, including branches located in DHA EME, Askari 10, and DHA Z Block.

KFC has not yet issued an official response to the development. The company’s position on the matter is still awaited.

In an order issued under Section 59A of the Punjab Sales Tax on Services Act, 2012, the PRA stated that the business had allegedly bypassed the mandatory Electronic Invoice Monitoring System and failed to accurately declare taxable sales.

The latest measures reflect ongoing efforts by tax authorities to strengthen compliance and enforce sales tax regulations across the retail and food service sectors.

Earlier, the popular Lahore-based coffee chain Double Shot was sealed by the Punjab Revenue Authority (PRA) over allegations of under reporting sales and violating electronic invoicing regulations, which is designed to track transactions in real time and improve tax transparency. 

Double Shot has become one of Lahore’s most recognisable coffee chains in recent years. The company has built a strong customer base through multiple outlets and a growing presence in the city’s café culture. 

The sealing action was taken after officials claimed the company had failed to comply with provincial tax laws and additionally had bypassed mandatory digital monitoring systems.  

The enforcement action was carried out under Section 59A of the Punjab Sales Tax on Services Act, 2012. The PRA stated that although the electronic invoicing system had been installed at the company’s outlets, invoices were allegedly generated outside the approved platform. Officials claimed that invoices issued on June 11, 2026, did not pass through the mandatory monitoring mechanism.

Authorities said such practices can deprive the government of legitimate tax revenue. Resultantly, several branches were sealed until the matter is resolved and all legal requirements are fulfilled.  

Although Double Shot founder Ali Chughtai issued a brief statement confirming that operations at affected branches had been suspended. However, no detailed immediate explanation was provided publicly.  

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