Pakistan: Cigarette Smuggling Causing over Rs 7b Loss Annually

Source from:  Daily Times 04/06/2016

Smuggling of cigarettes of different brands and tax evasion causes a loss over Rs 7 billion to the national exchequer annually, documents reveal.

The Pakistan Tobacco Company and Federal Board of Revenue have failed to curb smuggling of cigarettes into the country. Documents available with Daily Times reveal that about 20 percent of the cigarettes consumed in the country are smuggled. On the other side, the local cigarette manufacturers provide wrong data to FBR to evade taxes. According to a report of the Framework Alliance, cigarette companies in Pakistan evade over Rs 17b in taxes annually. According to documents, international company Philip Morris was also allegedly involved in tax evasion. Another international company, Nelson, in its report has revealed that cigarette manufacturers in Pakistan are involved in massive tax evasions. According to sources, Philip Morris Company has fired 141 employees in Pakistan without issuing any prior show-cause notices to them. When contacted, senior FBR officials claimed that action will be taken against those involved in tax evasion and cigarette smuggling. Enditem