ISLAMABAD: The Sub-committee of the Senate Standing Committee on Interior and Narcotics directed the Federal Board of Revenue (FBR) on Monday to provide complete data of taxpayers from 2021 to date related to tobacco industry.
A meeting of the sub-committee was held under the convenership of Senator Saifullah Abro to review tax collection of tobacco sector, smuggling-related issues and enforcement mechanisms in the tobacco sector.
The committee received detailed briefings from the FBR officials and the Federal Investigation Agency (FIA), effect from July 2026. The FBR officials said that following cabinet’s approval, tax-related data was released annually only of the higher tax payers.
However, the committee directed the FBR to provide complete data of taxpayers from 2021 to date related to tobacco industry. Convener Senator Abro stressed that the tax net should be expanded to include the maximum number of eligible taxpayers. He reiterated that broadening the tax base was essential for improving national revenue collection.
The committee also discussed tea imports as Senator Abro observed that there were 52 companies importing tea into Pakistan. Referring to imports destined for the erstwhile Fata region, he questioned whether tea worth Rs62 billion imported annually for the area reflected actual consumption, asking: “Do they really consume this much tea?”
FIA officials informed the committee that they would work jointly with the FBR in tax-exempt areas to address smuggling and related issues. In response to a question from Senator Abro regarding visits to tax-exempt regions, FIA officials said the zonal directors of Peshawar and Kohat would visit those areas. Senator Abro directed that two additional officers be included in the inspection team.
FBR officials maintained that taxation matters fall under the jurisdiction of the Senate Standing Committee on Finance rather than the Interior Committee.
They stated that the present subcommittee could examine issues related to smuggling by companies, as reflected in its agenda. Senator Abro responded that customs-related matters were linked to the FBR, adding the committee could not be restricted from performing its oversight responsibilities.
The convener asked the FBR to provide complete data of tobacco companies taxpayers to the committee. When FBR officials responded that the data of only highest taxpayers was shared after cabinet approval, Senator Abro expressed strong dissatisfaction.
While discussing the investigation into the smuggling of 2,828 cartons of cigarettes, the convener emphasised that the FIA was independently conducting its investigation and that the committee bore no responsibility for that process.
Reaffirming the committee’s authority, he said it would continue to perform its constitutional responsibilities without external interference. Referring to the discussion, he referred to the Prime Minister’s public statement that tax evasion worth one billion dollars had taken place. Senator Abro questioned whether the PM had been provided with incorrect information before the advertisement was issued.
He also noted that relevant SROs were amended every year and urged the FBR to fix its internal system, warning that continued institutional failures would undermine public confidence. Citing the theft of 2,828 cartons of cigarettes, he remarked that no meaningful action had been taken despite the scale of the matter.
During the discussion, Senator Dilawar Khan launched a strong criticism of the FBR’s tax administration and accountability mechanisms. He alleged that incorrect information had been conveyed to Prime Minister Shehbaz Sharif, Federal Information Minister Atta Tarar and Defence Minister Khawaja Asif, questioning why the country’s population of 260 million had been misled.
He referred to the reported theft of goods worth Rs300 million from a government warehouse, for which an FIR had been registered. Senator Dilawar Khan further questioned why an officer allegedly under investigation on the theft of 2,828 cartons case had been granted leave.
The FBR officials informed the committee that significant measures had been introduced over the past year to curb tax evasion. They further said that the FBR itself wanted action against officers responsible for theft and revenue losses, while emphasising that all investigations and proceedings must be conducted strictly in accordance with the law.
The FBR also informed the committee that it had proposed imposing 18 percent sales tax in tax-exempt areas through amendments to the relevant SROs. Officials further stated that anti-smuggling operations had resulted in recoveries of Rs1.5 billion during the past year.
Senator Talha Mahmood cautioned that sending FIA teams directly into industrial areas could create difficulties for businesses. He suggested that the FIA should obtain the required data from the FBR instead of conducting extensive field visits. He also observed that flawed tax policies were adversely affecting the business community and described the current federal budget as damaging for the public and the economy.
At the conclusion of the meeting, the committee directed the FIA to continue examining matters related to the tobacco industry falling within its jurisdiction, particularly those concerning smuggling and enforcement.
The committee also reiterated its demand for complete taxpayer data from 2021 onwards related to tobacco companies and emphasised that transparency, institutional accountability and effective enforcement were essential to preventing tax evasion and protecting the national exchequer.
