Cigarette makers to compile filter rods production and sales data

The Federal Board of Revenue (FBR) has made it mandatory for the cigarette manufacturers to compile comprehensive production and sales data of filter rods to eliminate federal excise duty evasion. The FBR has amended SRO 217(I)/2010 through SRO 811(I)/2010 issued here on Tuesday.
The cigarette manufacturers have to provide data including raw material imported/purchased, number of filter rods manufactured, total number of filter rods available for consumption in cigarette manufacturing, filter rods sold in market, FED on filter rods sold and other information specified in the concerned Registers.
The purpose of the notification is to check whether the cigarette manufacturers have accurately paid the FED on the sale of filter rods. According to the notification, the registers would be maintained by cigarette manufacturers having in-house facility of filter rods manufacturing.
A register as specified in Annexure-8 to this notification shall be maintained by cigarette manufacturers having in-house facility of filter rods manufacturing and claiming conditional exemption provided vide S. No 16 of Table-1 of Third Schedule to the Federal Excise Act, 2005.
Under the said Schedule of the Federal Excise Act, goods for further manufacture in the Export Processing Zones are covered. The exemption under this entry shall also be admissible on un-manufactured tobacco purchased and used after necessary treatment in the manufacture of cigarettes and other excisable tobacco products.
The FBR has also specified the details of the register for cigarette manufacturers having in-house facility of filter rod manufacturing and availing conditional exemption vide Third Schedule to the Federal Excise Act, 2005. The government had imposed Federal Excise Duty @ Rs 1 per filter rod for cigarettes aimed at realisation of revenue on sale of filter rods to unregistered and illicit manufacturers of cigarettes.