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Iconic childhood brand Bio Amla no longer available as manufacturer’s properties set for auction over unpaid taxes. The Federal Board for Revenue (FBR) is poised to auction properties owned by the creators of the iconic Bio Amla shampoo brand due to unpaid taxes.
This upcoming auction, scheduled for August 21t this year, follows years of pursuit by the FBR of Forvil Cosmetics Pvt Ltd, the company behind the popular black shampoo bottle that has been a staple in Pakistan since the early 1980s.
The FBR’s investigation into Bio Amla’s manufacturers began in 2017, spurred by reports of significant under-invoicing. In response, the Intellectual Property Organisation (IPO) was enlisted to halt the transfer, sale, and sub-leasing of Bio Amla’s intellectual property due to unpaid sales tax. Forvil Cosmetics, established in the 1960s, has long been a key player in Pakistan’s cosmetics market, known for creating domestic products rather than relying on imports.
Despite its historical significance, the privately owned company faced allegations of tax evasion, leading the FBR to intensify its scrutiny. In December 2022, initial efforts to auction the properties were made. Directors Zakauddin Shaikh, Zunir Ahmad, Khalida Parveen, and Wamiq Zaka were identified as defaulters, owing Rs 310.7 million in sales tax along with default surcharges.
As these defaulters have not paid their dues, their immovable properties are now up for sale to recoup the government’s outstanding sums, which have surged to nearly Rs 570 million including penalties and surcharges. The FBR has suspended the company’s sales tax registration number, emphasizing the significance of this unprecedented action in deterring tax evasion and boosting tax revenues.
To participate in the auction of Bio Amla, potential bidders must adhere to specific terms and conditions, including declaration of bidding on their own behalf or as authorized representatives. The legal team has affirmed that trademarks and copyrights constitute movable property, enabling their inclusion in the auction. This groundbreaking move by the FBR is expected to set a precedent, discouraging tax evasion and bolstering the agency’s revenue collection efforts.
