Pakistan: FBR''s Drive against Illicit Tobacco, Cigarette Trade

Source from:  Pakistan Daily Times 01/11/2013

The Anti Illicit Tobacco/Cigarette Unit working under the Federal Board of Revenue's (FBR) Inland Revenue Wing has successfully launched its wide ranged operations covering almost all segments of this tax evasion-prone sector.

In addition to enforcement activities audits have also been conducted identifying recoverable duty and taxes over Rs 262 million.

During the last six months (July to December 2012) of the current fiscal year, the intelligence and investigation arm of FBR's Inland Revenue unearthed tax evasion in the cigarette manufacturing and sales.

Millions of untaxed cigarettes have been confiscated and the business concerns have been sealed. The confiscated cigarettes include both locally manufactured and foreign brands. The last factory raided was CM Tobacco located in Mid Ranjha Sargodha, where 1.1 million cigarettes were seized. The value of the cigarettes seized, on which duty has not been paid, is Rs 1.15 million. The machinery of CM Tobacco has also been sealed.

In order to raise awareness-level of taxpayers in the cigarette industry, an awareness campaign was also organised by FBR's Intelligence and Investigation Directorate. The campaign was focused towards provision of information to retailers, dealers and wholesalers through FBR's web portal. The campaign also used print and electronic media, and notices to wholesalers and retailers of cigarettes.

The FBR is actively pursuing tax evasion cases in cigarettes, batteries, real estate and other suspected sectors.

Cigarettes seized in the last 6 months:

Brand name Quantity

Pine 770,000 Cigarette Sticks

Hi-Lite 50,000 Cigarette Sticks

Marlbro 30,000 Cigarette Sticks

Stanford 20,000 Cigarette Sticks

Oris Slim 10,000 Cigarette Sticks

Red and Wite (Counterfeit) 40,000 Cigarette Sticks

Miscellaneous foreign brands (Counterfeit) 180,000 Cigarette Sticks Enditem