FBR setting up dedicated Anti-Evasion Cells at RTOs

The Federal Board of Revenue (FBR) has decided to set up dedicated Anti-Evasion Cells in each Regional Tax Office (RTO) this week to replicate the ongoing drive of Directorate General of Intelligence and Investigation Inland Revenue (IR) against counterfeit cigarettes and non-duty paid or smuggled tobacco/cigarettes in Punjab, Sindh and Balochistan.
Sources told Business Recorder here on Monday that the Anti-Evasion Cells of the RTOs would work on the pattern of the Broadening the Tax Base (BTB) Units in the field formations. The Anti-Evasion Cells would also be assigned the task to check manufacturing units involved in production of counterfeit cigarettes.
Primarily, the monitoring, co-ordination and guidance would be done by the directorate whereas Anti-Evasion Cells would directly report to the respective Chief Commissioners of the RTOs. The agency has decided to carry out the exercise in all cities of the county with the co-operation of the RTOs. The relevant Cells would be responsible for recovery and penal action against units involved in supply of non-duty paid or smuggled tobacco/cigarettes in Punjab.
The dedicated intelligence unit of the KPK would provide all updated information about the trucks carrying tobacco/cigarettes etc to the relevant Anti-Evasion Cells for timely action against the concerned persons involved in trade of the counterfeit cigarettes or non-duty paid smuggled tobacco/ cigarettes. The directorate would timely transmit the intelligence related information to the Anti-Evasion Cells for taking action against the violators' without delay.
According to sources, following successful enforcement drive against the non-duty paid or smuggled tobacco/cigarettes in the Khyber Pakhtunkhwa (KP), similar kind of exercise has been launched in the remaining provinces. The awareness campaign has been launched in Punjab, Sindh and Balochistan.
The dedicated unit of the DG Intelligence IR would also co-ordinate with all RTOs for starting awareness campaign and subsequently enforcement exercise in other parts of the country in due course of time. The same kind of enforcement exercise will be replicated in all other cities of the country. Under the initial phase of the exercise in Punjab, Sindh and Balochistan, the agency has identified over 1261 dealers, wholesalers and main retailers.
The directorate has started awareness campaign in these provinces before taking legal action against the suppliers, stockists and wholesalers of non-duty paid or smuggled cigarettes. The warnings have also bee issued to them to refrain from supply of non-duty paid or smuggled items as per relevant provisions of the federal excise laws.
In KP, 450 people including wholesalers, dealers and big retailers have been identified and such kind of 400 persons have been identified within the jurisdiction of Karachi and Balochistan. The agency has also distributed educational material on status of existing tax laws among 291 people falling within the jurisdiction of Faisalabad Division. Within the jurisdiction of Lahore Division, 120 persons have been identified and served with the material with the warnings to stop selling or trading of non-duty paid cigarettes or tobacco etc.
The Directorate General of Intelligence and Investigation IR is mainly focusing on seizure and recovery of the unpaid amount of duty along with penalty/additional tax etc instead of filing FIRs which only result in litigation. This strategy will play an important role in generating additional revenue in the remaining months of current fiscal. It would also help the FBR to meet the revenue collection target of Rs 1952 billion.
Besides basic objective of educating all those involved in cigarette/tobacco business, the national drive against the non-compliant cigarette manufacturers would broadly cover raids on the illegal warehouses of tobacco/cigarettes; investigative audit of the 'Green Leaf Threshing' units, examination of tax record and clearances of KP-based cigarette manufacturers and enforcement of excise laws within the territory of Azad Jammu and Kashmir.