T&T system: Tobacco cos file another case against FBR in PHC

ISLAMABAD: Some local tobacco companies have filed another case against the Federal Board of Revenue (FBR) with the judicial fora, demanding relaxations in the implementation of the track and trace (T&T) system.

Sources told Business Recorder, here on Saturday that the FBR has stopped the sale of cigarettes without the T&T stamp.

Some of the companies that had earlier filed a case against the FBR have again filed a writ petition in the Peshawar High Court (PHC) seeking relaxation from T&T system.

The cigarette makers are seeking relaxations that their old stocks manufactured up to June 30 may be allowed to be sold, as the T&T system was implemented from July 1, 2022.

However, the tax authorities stated that the old stocks were required to be cleared by June 30 and current laws apply at the new fiscal year, the next date of hearing is on July 13.

The implementation of T&T has already been delayed as 12 cigarette manufacturers had filed a case in the PHC, demanding that the cost of implementing the T&T system has to be borne by the FBR.

Tobacco industry: FBR is all set to fully implement T&T system

However, as soon as the request was turned down by the PHC in the last week of June 2022, the FBR teams stopped the movement of cigarette stocks from the factory premises from July 4 which were not affixed with the tax stamps containing Unique Identification Marking (UIM) of the T&T system.

Currently, there are around 40 registered cigarette makers but only 21 are functioning, and 18 of them have yet to sign the T&T agreement with the FBR, and their sales have been stopped.

Copyright Business Recorder, 2022