Finance Act 2011: tax officials may confiscate all excisable goods

Finance Act 2011 would empower the officials of Inland Revenue to seize all excisable goods including cigarettes and beverages under section 26 of the Federal Excise Act, 2005. Sources told Business Recorder here on Monday that presently, the counterfeit cigarettes/non-duty paid cigarettes and beverages can be seized under rule 63 of the Federal Excise Rules, 2005.
The authority for seizure of counterfeit cigarettes/non-duty paid cigarettes is available under section 26 of the Federal Excise Act, 2005. However, for seizure of beverages no empowering section for seizure is available under the Federal Excise Act, 2005. The Federal Board of Revenue has proposed that the word "cigarettes" wherever occurring in section 26 may be substituted with the words "cigarettes or other dutiable goods" thus empowering officer of Inland Revenue to seize all goods liable to confiscation including cigarettes and beverages.
Presently, under section 26 (power to seize) of the Federal Excise Act, 2005, the counterfeited cigarettes or cigarettes which have been manufactured unlawfully or on which duty has not been paid as required under this Act and rules made thereunder, shall be liable to seizure besides the conveyance which has been used for the movement, carriage or transportation of such cigarettes.
For the purpose of this section, 'conveyance' shall include all of its fixtures, fittings and accessories etc, it added. The amendment to the section 26 of the Federal Excise Act, 2005 would empower the officials of Inland Revenue to seize all goods liable to confiscation including beverages. In this way, the powers of the tax officials would be enhanced in budget (2011-2012).