Tobacco sector: FBR focal persons in contact with E&T dept, PM told

ISLAMABAD: The Federal Board of Revenue (FBR) informed Prime Minister Shehbaz Sharif on Thursday that it has appointed several focal persons and is working closely with the Excise and Taxation Department in a focused drive to bring the country’s tobacco sector under the tax net.

During a weekly review meeting chaired by the prime minister, FBR officials gave a detailed briefing on their recent enforcement actions, including the seizure of a large quantity of illegal cigarettes.

These efforts, they explained, highlight the FBR’s increasing resolve to tackle tax evasion in the tobacco industry – a sector notorious for evading taxes, draining crucial resources from the national treasury.

The prime minister was briefed that these actions form part of broader reforms aimed at strengthening the country’s tax system and ensuring better compliance across various sectors of the economy.

In response, the prime minister called for even stricter enforcement across all sectors, with a particular focus on illegal operations such as underground cigarette factories.

He directed the provincial governments to step up their efforts, offering steadfast cooperation with the FBR in its relentless crackdown on tax evaders and illicit factories.

He further directed the FBR to accelerate efforts to achieve the government’s ambitious target of an 11 percent Tax-to-GDP ratio.

He emphasized that expanding the tax base and ensuring broader compliance were crucial to stabilizing the country’s fiscal position.

While discussing fiscal expansion, he also acknowledged the progress made in customs clearance procedures.

He praised the FBR’s innovative use of technology, especially artificial intelligence, which has greatly cut down processing times for imports and exports.

The prime minister instructed the FBR to continue focusing on further reducing clearance times to improve trade efficiency.

Additionally, he directed the FBR to expedite the release of sales tax refunds, aiming to improve liquidity for businesses and stimulate economic activity.

The meeting also addressed the status of pending tax cases in tribunals, with FBR officials assuring that progress is being made.

The meeting was attended by Minister for Economic Affairs Ahad Cheema, Minister for Law Azam Nazeer Tarar, Minister for Information Ataullah Tarar, Minister for Petroleum Ali Pervaiz Malik, State Minister for Finance Bilal Azhar Kiani, Attorney General for Pakistan, FBR Chairman Rashid Langrial and other senior officials.

Copyright Business Recorder, 2025