The Punjab Revenue Authority (PRA) has slapped fines on a number of outlets of Double Shot, a popular chain of coffee shops in Lahore, for allegedly failing to comply with tax laws issued by the provincial government, particularly under-reporting sales and evading the use of the Electronic Invoice Monitoring System (EIMS).
Punjab Sales Tax on Services Act, 2012, under Section 59A, the authority had started enforcement action due to alleged discrepancies in the company’s sales reporting system.
PRA Alleges Non-Compliance with Electronic Invoicing System
The business, with the registration number PNTN H053642, had implemented the Electronic Invoice Monitoring System (EIMS) aimed at promoting transparent and real-time reporting of taxable transactions, officials said. But the authorities claimed there was a problem with the invoices being prepared outside the approved system.
The order states that the electronic monitoring framework has been violated with the issuance of invoices dated June 11, 2026. PRA says this kind of practice may result in misreporting of sales and less tax paid.
The EIMS was implemented to enhance the system of tax collections and also to reduce the loss of revenue due to unrecorded transactions.
Authorities Cite Revenue Loss Concerns
According to Punjab Revenue Authority, incorrect disclosure of taxable sales has a negative impact on the government revenue collection. Collecting taxes properly leads to public services and development projects, it was said.
Initial data shows that sales reported in official tax registers differ from sales that were actually made. The PRA said that parts of its turnover had been under-reported for tax purposes, as well as saying that it was a case of alleged failure to comply with provincial tax legislation.
Seven Double Shot Branches Sealed in Lahore
In the course of the enforcement action, the authority had directed to shut and seal several Double Shot outlets in Lahore including their immediate closure. The following branches are involved:
- Gulberg Branch
- Falcon Complex, Cantt Branch
- C Block, Model Town Branch
- DHA Phase-6 Branch
- Lalak Jan Chowk, DHA Phase-2 Branch
- Pine Avenue Branch
- Dolmen Mall Branch
As stated in the official order, the branches can be closed for as long as one month or until the company is compliant with all the requirements set by the authority.
The closures have caused a temporary disruption in services to customers and employees of outlets.
Double Shot Founder Responds
Double Shot founder Ali Chughtai spoke to customers and supporters in a statement on the internet following the broad dissemination of the sealing order on social media.
In a statement, Chughtai said the company has temporarily suspended operations and assured customers that it is doing its best to fix the situation. He said he expects to be told when the branches will reopen, and he will provide that information.
Investigation Remains Ongoing
Punjab Revenue Authority has yet to make any final decision aside from the sealing of outlets. There will be cases of further review and investigation before a long term decision is made, said officials.
It is believed that the company will have to respond to the tax authorities’ concerns and show compliance with relevant laws, rules and regulations to allow operations to resume.
“This case reflects the growing focus on electronic invoicing and tax reporting accuracy, with the authorities keen to gain transparency of commercial transactions,” said industry analysts.
Customers, employees and stakeholders continue to wait for more developments as the investigation goes on. Further updates will come after the review by the PWA and decision on the further course of action.
Meanwhile, the impacted Double Shot Coffee outlets in Lahore are closed and the corporation is trying to address the problems detected by the provincial tax officials.
