FBR to set up network to intensify enforcement actions

Chairman FBR/Secretary Revenue Division Dr Muhammad Irshad Wednesday decided to set up "Inland Revenue Enforcement Network" on national level to intensify enforcement activities of Inland Revenue, particularly in the area of tobacco and cigarettes. Sources told Business Recorder that it was the crux of videoconferencing of the chairman FBR with the chief commissioners of Large Taxpayer Units and Regional Tax Offices (RTOs) held at the FBR House.
According to sources, tax authorities have categorically conveyed to the chief commissioners of LTUs and RTOs to increase enforcement activities of sales tax, income tax and federal excise with special focus on tobacco sector. A central office of the Inland Revenue Enforcement Network would be established and headed by a senior IR official. The Inland Revenue Enforcement Network would be assigned the job to co-ordinate all IR related enforcement activities across the country.
The whole idea is to increase sales tax, income tax and FED collection to meet the annual revenue collection target for 2016-17. One of the major segments of the Inland Revenue Enforcement Network would be tobacco sector. The conference acknowledged the biggest seizure of processed tobacco made by RTO Rawalpindi on Wednesday. It was the major seizure of processed tobacco in 2017. Huge quantity of processed tobacco has been seized from 4-5 godowns situated near Chakwal. The seized 3,100 bales of processed tobacco would be used for manufacturing of 400 million sticks of cigarettes involving evaded amount of duties and taxes to the tune of Rs 700 million. The godowns belong to a private limited company which has not filed its income tax and sales tax returns for the last five years.
Sources said that some of the major tobacco related enforcement activities revealed that the Regional Tax Office (RTO) Rawalpindi has seized 1.1 million non-duty paid sticks of cigarettes. RTO-II Karachi has confiscated huge quantity of foreign brands counterfeit cigarettes. The RTO-Hyderabad has seized three trucks loaded with non-duty paid cigarettes. The RTO Bahawalpur seized non-duty paid cigarettes amounting to the Rs 40 million. The RTO Multan seized one truck loaded with non-duty paid cigarettes. The RTO Faisalabad crackdown against the illicit trade revealed that the RTO has seized 30 million sticks of non-duty paid cigarettes. The Intelligence and Investigation Inland Revenue Faisalabad seized a truck loaded with non-duty paid cigarettes. The RTO Gujranwala has seized huge quantity of foreign counterfeit and local non-duty paid cigarettes. A joint operation of the RTO Rawalpindi and RTO Sialkot resulted in seizure of one truck loaded with non-duty paid cigarettes. The RTO Rawalpindi has seized foreign brand counterfeit cigarettes in Jhelum.