Tobacco tax policy: FTO seeks explanation from FBR over non-implementation

ISLAMABAD: The Federal Tax Ombudsman (FTO) Mushtaq Sukhera on Thursday called the Federal Board of Revenue (FBR) officials to explain why the tax policy recommendations for cigarette manufacturers to check tax evasion and increase revenue collection from this sector have not been fully implemented yet. The FBR officials briefed the FTO on the status of the implementation of recommendations at the FTO office.

According to the sources, it has been observed with concern by the FTO that findings / recommendations of the FTO dated 6th Nov, 2019 in the case of cigarette manufacturers have not yet been fully implemented, despite the fact, a period of almost 10 months have passed.

Moreover, no action has so far been taken by the FBR on the following findings / recommendations of the FTO: First, the FBR should extend the procedure prescribed for monitoring Green Leaf Threshing (GLT) units under rules notified vide SRO. 1149(I)/2018 dated 18 September 2018 to cigarette manufacturers as well.

Second, the FBR should prescribe standard operating procedures for the staff posted to manufacturing units under Section 40B of the Sales Tax Act 1990, and Section 45 of the Federal Excise Act 2005.

Copyright Business Recorder, 2020