FBR Bans Tobacco Products Without Tax Stamps From Leaving Manufacturing Sites

The Federal Board of Revenue (FBR) has notified that tobacco products will no longer be allowed to exit a production site, factory premises, or manufacturing plant without tax stamps or Unique Identification Marking (UIM).

According to the official notification issued by the FBR, the latest directives will take effect from 30 April 2022 and will be applicable on tobacco products manufactured in Azad Jammu and Kashmir (AJK) and former FATA and PATA regions.

The manufacturers of tobacco products in AJK and former FATA and PATA regions can procure the tax stamps or UIMs from FBR’s Licensee M/s AJCL/MITAS/Authentic Consortium.

The tax watchdog has implemented the track and trace system for tobacco products under section 40C (2) of the Sales Tax Act 1990 read with rule 150ZF of the Sales Tax Rules 2006.

The provisions empower the FBR to notify the date for the implementation of electronic monitoring of production and sales of goods in all manufacturing sites of a specific product in a manner as prescribed in the relevant laws.

Speaking in this regard, Member Inland Revenue Operations at FBR said that from 1 May 2022, tobacco products without the tax stamps or UIMs for track and trace system will not be allowed to leave the production facilities in AJK and former FATA and PATA regions.