Eight local tobacco companies and two multinational cigarette manufacturing companies have applied to the Federal Board of Revenue (FBR) for registration of their brands to obtain “brand registration certificates” for selling their products in the market.
As per FBR data, the companies who have registered their brands with the FBR are
- Pakistan Tobacco Company (PTC);
- Philip Morris (Pakistan) Limited;
- Khyber Tobacco Company (KTC);
- Sarhad Cigarette Industries;
- International Cigarette Industries;
- Universal Tobacco Company;
- Souvenir Tobacco Company;
- Asia Tobacco Company;
- Royal Tobacco Company
- Indus Tobacco Company
Under the sales tax general order number 7 of 2021, the FBR issued a detailed procedure for licensing brand names for the specified sectors. The Board had directed manufacturers of tobacco, sugar, fertilizer, cement, and beverages to obtain brand registration certificates from the FBR for selling their products in the market.
All existing and new manufacturers are required to register their brand of each product with the FBR before selling the same in the market. No manufacturer shall be allowed to sell their products in the market without having their brands registered in the market.
The FBR has issued two different lists of manufacturers of cigarettes who have applied for the registration of their brands under section 40E of the Sales Tax Act, of 1990.
The first list of manufacturers of cigarettes who have applied for the registration of their brands under section 40E of the Sales Tax Act, 1990:
- Pakistan Tobacco Company (PTC): Brands included Benson & Hedges; Capstan; Dunhill; Embassy; John Player Gold Leaf; John Player; Capstan by Pall Mall; Gold Flake; Government SKUs and Export SKUs.
- Philip Morris (Pakistan) Limited: Marlboro Red; Marlboro Gold; Marlboro Vista; Parliament; Red & White Special; Red & White King Size Filter; Morven Classic; Morven by Chesterfield and Diplomat.
- Khyber Tobacco Company (KTC): Brands are Gold Street International; Gold Street Classic; Olympic and Kisan.
- Sarhad Cigarette Industries: Style HL; Boss SC; Channel-5 HL; S. Gold HL; Omega HL; Boss HL; Relax HL; Globe HL; Canton HL; Euro HL; Captain Gold; Manhattan HL; Big Boss HL and Dollar HL.
- International Cigarette Industries: Brands included President; Mark-9; PIA; Spotlit; Wonder Classic; Burj; President Gold; President Silver; President Light; President Classic; Blue Diamond; Aroma; Janson’s International; Wonder; Party; Vigo; Pine Gold; Any Time and Billion.
- Universal Tobacco Company: County Club; Ranger; More One; Armee and Café.
- Souvenir Tobacco Company: Melburn KSF; Allwin Classic KSF; Melburn Gold KSF;Badshah KSF;Mera Sultan KSF; Sindbad KSF; Bonus KSF;Decent Royal KSF; Melburn Plus KSF; Melody KSG; Melburn Galaxy KSF; Lord One KSF and Lord One Light KSF.
- Asia Tobacco Company: Brands included Captaan KSF; Dubai KSF; KK KSF; Once Moor KSF; Restwell KSD; London Bridge KSF and Jazz KSF.
- Royal Tobacco Company: Registered brands with the FBR included Champion International; SMS; R-6; Champion Lights and Minar.
- Indus Tobacco Company: Brands are Best; Kick; Wins; Golden Bridge; Cadet; Crown;. Hera; Swiss; Jeep; Red Shine ad PILOT.
Second list of manufacturers of cigarettes who have applied for the registration of their brands under section 40E of the Sales Tax Act, 1990:
Philip Morris (Pakistan) Limited: Parliament Red; Marlboro Advance; K2 and Royals.
The federal government inserted section 40E in the Sales Tax Act, 1990 vide Finance Act, 2021, which empowers the FBR to issue Brand Licensing Certificates to the manufacturers of specified sectors i.e. tobacco, sugar, fertilizer, cement, and beverages.
As per section 40E of the Sales Tax Act, ” Any specified brand and SKU found to be sold without obtaining a license from the Board shall be deemed counterfeit goods and liable to outright confiscation and destruction in the prescribed manner and such destruction and confiscation shall be without prejudice to any other penal action which may be taken under this Act, it added.
For this purpose, the FBR has issued a procedure for the issuance of a Brand Registration Certificate for these sectors vide STGO 7/2021 dated 3rd August 2021.
According to the notification, all existing and new manufacturers are required to submit an application to the project director (TTS) for issuance of a Brand Registration Certificate for all of their products. For this purpose, each manufacturer shall provide the requisite information required for brand registration.
The Office of the Project Director, TTS shall scrutinize all the applications and initiate the process of registration of the products as per the notified procedure. It has been further notified by the FBR that if any of the manufacturers fail to obtain Brand Registration Certificate from the FBR, they shall not be allowed to sell their unregistered products in the market.
