ISLAMABAD: While conceding tax evasion of Rs250 to Rs300 billion on account of illicit cigarettes, the FBR has launched its crackdown on evaders in a forceful manner.
Some influential political elites are involved in cigarettes business and allegedly evading taxes.
In an official statement issued on Sunday, the FBR states that Pakistan is facing the menace of illicit trade and unlawful manufacture of cigarettes, a problem estimated to be causing an annual revenue loss of nearly Rs250 to Rs300 billion to the national exchequer. The FBR launched this enforcement actions when it was facing increasing revenue shortfall in achieving the annual tax collection target of Rs14.13 trillion for the current fiscal year.
Recognising the gravity of this challenge and its far-reaching economic implications, the Prime Minister of Pakistan has issued clear directions to decisively curb the illicit cigarette trade and ensure strict enforcement of tax laws.
In compliance with these directions of the Prime Minister of Pakistan, the Federal Board of Revenue (FBR) formulated a comprehensive and multi-layered enforcement plan aimed at eliminating non-duty-paid cigarette production, strengthening monitoring mechanisms, and disrupting illegal supply chains.
This national effort received broad support from all stakeholders, most notably the Pakistan Army, which has extended full cooperation to reinforce enforcement operations. As part of the coordinated strategy, approximately 120 Pakistan Rangers personnel have been deployed at Green Leaf Threshing (GLT) units across the country to assist in monitoring and securing the premises against illicit manufacturing activities.
Simultaneously, FBR has also posted more than 200 dedicated monitors under Section 40B of the Sales Tax Act, 1990, and Section 45 of the Federal Excise Act, 2005, to oversee production, ensure lawful removal of goods, and verify tax compliance at manufacturing facilities.
