ISLAMABAD: The executive member of Cigarettes Manufacturing Association of Pakistan (CMAP) and Executive Director Souvenir Tobacco Co. Ltd, Dilawar Khan said that Federal Board of Revenue (FBR) could collect the double revenues per year from cigarettes industries, if the smuggling of cigarettes stopped in the country.
He expressed these views at a press conference held here on Tuesday along with office-bearers of CMAP including Haji Jan Bahadur Khan, Internation Cigarette Industry, Shiraz Bacha, Sarhad Cigarette Industry, Farhan Masood, Khyber Tobacco Company, Javed Khan PTC and Nasir Najam, Philip Morris International.
"Currently around Rs 75 billion are being collected by the FBR from cigarettes industries. If strict enforcement was launched to stop the smuggling, it would help generate about Rs 150 billion per year", he added.
Khan said that they did not oppose of Procurement Tax Labels and Supervision System, if the enforcement for such system was strictly ensured across the country.
Besides, in its current shape, it will not result in achieving the objective of curbing the illicit trade in tobacco products, he said.
We are feared to be fined, if any smuggled packet of our brand is found without tax labels due to weak enforcement system, he said
Similarly, such exercises are being repeated in case of health warnings, as many smuggled packets were found without health warnings and we were many times fined for it , Khan told the media.
Another member of CMAP, Chief Executive Officer Imperial Cigarettes Industries, Haji Sher Bahardar Khan said that there were more than 25 factories in 8 agencies in FATA and in Kashmir which were not covered in the Tax Act.
"Neither health warnings nor tax labels on each packets of cigarettes are applicable for those factories manufacturing the cigarettes", he added.
Before launching such tax labels, the inputs of stakeholders must be sought who are paying huge amount as tax to the government, he said.
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