Directorate General of Intelligence and Investigation Inland Revenue (IR) Federal Board of Revenue (FBR) has clarified here on Friday that certain bottlers were involved in marketing of beverages in Khyber Pakhtunkhwa (KPK) in violation of their franchise pacts sans any evidence of federal excise duty (FED) and sales tax payment.
Responding to a query of Business Recorder on seizure of beverages originating from Punjab and marketed in KPK, sources said the Directorate of Intelligence IR had received credible information that some bottlers of beverages of a certain brands were involved in marketing beverages in KPK in violation of their franchise agreements. It was surprising that the bottlers of Punjab are selling their beverages in KPK without any justification.
Under the franchise agreements, the bottlers of Punjab do not go to KPK for selling soft drinks as the purchasers are already identified in the Punjab province. The dedicated intelligence unit of the KPK accordingly checked a number of trucks carrying beverages to Peshawar on March 26, and April 2, becoming suspicious of their activities that if they violate franchise agreements they might be involved in evasion of duties as well.
During checking it was found that they had no evidence of payment of FED and sales tax. They were given sufficient time to furnish evidence of payment of duty and taxes but they failed to furnish the same and finally agreed to pay duty and taxes along with penalties.
The trucks were immediately released on payment of duties and taxes. The Directorate of Intelligence IR will continue to conduct surveillance for non-duty paid beverages in view of section 26 of the Federal Excise Act, 2005, sources added.
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