Cigarette manufacturing sector: PM seeks elimination of tax evasion culture

Updated 29 Dec, 2022

ISLAMABAD: Prime Minister Muhammad Shehbaz Sharif on Wednesday directed for immediate eradication of smuggling and tax evasion in the cigarette manufacturing sector.

Chairing a high-level meeting to stamp out the smuggling of tobacco and to discourage the tendency of tax evasion, he also directed the Federal Board of Revenue (FBR) to ensure meeting its revenue targets.

During the meeting, the prime minister stressed for bringing the tax evaders to face the law and observed that with the use of the latest technology and better enforcement, the tax collection system could be improved.

The meeting was attended by Minister for Finance Ishaq Dar, Minister for Interior Rana Sanaullah, PM’s Special Assistant Tariq Bajwa, FBR Chairman Asim Ahmed and other senior officials, the PM Office Media Wing said in a press release.

Track-and-trace system not implemented: Illegal cigarette trade continues to flourish

The meeting was apprised that under the prime minister’s directive, ‘track and trace system’ had been installed in the majority of cigarette manufacturing units which had improved tax collection.

In this sector, during the period from July to December, Rs 83.5 billion tax had been collected which was 26 percent higher than the tax collected during the corresponding period in the last year. The prime minister observed that FBR through a comprehensive mechanism should further improve the system, so that tax evasion could be completely stamped out. He also appreciated the efforts of FBR to improve the tax collection system and directed for further accelerating the steps in this regard.

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