FBR Bans Sale of Cigarettes Without Tax Stamps

The Federal Board of Revenue has banned all tobacco companies from selling cigarettes without tax stamps.

Sources said that FBR has directed all cigarette companies to affix electronic tax stamps from July 1, 2022, if they want to sell cigarettes in the market.

FBR enforcement teams will not allow the sale of cigarettes without tax stamps and will confiscate the goods if they come out of the factory premises, sources added.

Sources further said that Pakistan Tobacco Company, Philip Morris Company, and Khyber Tobacco Company have so far implemented a track and trace system.

The remaining 13 local cigarette companies are also being directed to install track and trace if they want to sell cigarettes. 12 out of 13 tobacco companies are operating in Mardan and Swabi while one company is in Sargodha, sources added.

All cigarette companies will be required to affix electronic tax stamps which will eliminate tax evasion of billions of rupees and increase tax revenue, sources added.

The official said that FBR is also closely monitoring retailers to help curb tax evasion, smuggling, and the illicit cigarette trade. It is pertinent to note that Peshawar High Court has ended the stay taken by local companies against the FBR with regard to bearing expenditures of installing the track and trace system.

  • Its a remarkable initiative especially for those manufacturers who sell non taxed ciagrettes in the market. FBR also need to monitor their field staff and simaltenously block all the routes by deploying special contigents of Rangers through which these ciagrettes had been smuggled for the last 30 yrs to the Punjab Market.

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