FBR drafting new rules to curb sale of unregistered cigarette brands in Pakistan

In order to curb the sale of illegal cigarette brands in the country, the Federal Board of Revenue (FBR) is in the process of drafting new rules under which cigarette brands registered with FBR could only be sold in Pakistani markets.

This was stated by Muhammad Ashfaq Ahmed, Member (Inland Revenue Operations) during his visit to RTO, Rawalpindi where he met the senior officers as well as the members of the squad which confiscated trucks carrying counterfeit cigarettes.

The Inland Revenue Enforcement Network (IREN) Squad of Regional Tax Office, Rawalpindi, seized two trucks illegally transporting non-tax paid counterfeit cigarettes for supply into local market.

As per FBR, the trucks were loaded with 300 cartons of counterfeit cigarettes of Classic Brand, and 300 cartons of counterfeit cigarettes of Kissan Brand containing six million cigarette sticks. As per details, the market value of the seized cigarettes comes to Rs. 18,900,000/- involving unpaid duties and taxes at Rs. 12,646,500/-.

It was told that some of the counterfeit cigarette brands are manufactured in AJK, and then transported across into Pakistani markets without payment of duty and taxes.

Meanwhile, Ashfaq Ahmed apprised the RTO, Rawalpindi IREN staff that from July 1, 2021, Track & Trace System would be rolled out to cover tobacco manufacturing across the country, and that AJK Government had approached Federal Board of Revenue to extend the scope of Track & Track System to cigarette manufacturing units located inside AJK territory.

FBR expects that the implementation of Track & Trace System and its extension into AJK, would help overcome the menace of counterfeit, illicit and non-tax paid cigarettes in the market.