Cigarette manufacturing units: AJK govt approaches FBR to extend scope of Track & Trace System

ISLAMABAD: The Azad Jammu and Kashmir (AJK) government has approached Federal Board of Revenue (FBR) to extend the scope of Track & Trace System to cigarette manufacturing units located within the territory of the AJK.

According to the details released by the FBR here on Thursday, the Track & Trace System would be rolled out to cover tobacco manufacturers from January 1, 2022.

The FBR informed that implementing its policy of zero tolerance against tax evasion, Inland Revenue Enforcement Network (IREN) Squads of FBR, in a counter-evasion operation, has seized non duty/tax paid cigarettes (approximately 65,811,500 sticks) worth Rs 156,480,112, resulting in detection of evasion of taxes and duties of Rs 125,662,630 in the first four months of FY 2021-22. Likewise, during the month of October, 2021, IREN had seized 16,326,000 illegal cigarettes worth Rs 46,978,050. As such evasion of taxes and duties worth of Rs 33,366,319 was detected.

This action is in pursuance to directions of the honorable Prime Minister of Pakistan against illicit sale of non-duty/tax-paid and counterfeit cigarettes.

IREN was established in September 2019 with a Chief Coordinator, Central Field Coordinator and seven regional enforcement hubs all across Pakistan, tasked to conduct raids and seizures on the counterfeit and non-duty paid cigarettes.

As a part of ongoing crackdown against illicit cigarette trade country wide, all IREN hubs intensified their operation against businesses dealing in non-duty paid and counterfeit cigarettes to save national exchequer from revenue loss.

Dr Muhammad Ashfaq Ahmed, the Chairman FBR has appreciated the performance of IREN staff.

He informed that from January 1, 2022, 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. It is expected that over the next few months’ implementation of Track & Trace System and its extension into AJK, coupled with IREN’s valiant drive would help overcome the menace of counterfeit, illicit and non-tax paid cigarettes in the market.

Copyright Business Recorder, 2021