FBR Starts Nationwide Crackdown Against Illegal Cigarettes, Sugar, and Fertilizer Bags

The Regional Tax offices of the Federal Board of Revenue, on the directions of the member Inland Revenue Operations, have intensified their nationwide crackdown against illegal, as well as unstamped, cigarette packets, sugar, and fertilizer bags during the weekend.

According to the details, the RTO Rawalpindi has sealed Bobby Pan Shop at Murree Road for repeated violations of relevant laws regarding illegal/ counterfeit cigarettes.

Similarly, the other RTOs, including Karachi, Lahore, Faisalabad, and Peshawar, in a nationwide crackdown, have also sealed and confiscated the counterfeit cigarettes.

This is the second major crackdown, which the RTOs conducted on the instructions of member IR operations against illegal cigarettes and other notified sectors that come under track and trace systems.

Sources told ProPakistani that senior officials of the Federal Board of Revenue are facing significant pressure due to their failure to enforce action against non-duty-paid goods, such as cigarettes and sugar bags.

The FBR had implemented the Track and Trace System in five sectors and also established a dedicated Inland Revenue Enforcement Network.

The functions of IREN Enforcement units include

• Monitoring the stamping machines installed in the premises of manufacturers of specified goods to ensure proper and uninterrupted operation of the Track & Trace system through periodic visits to the concerned manufacturing premises.
• To examine and authenticate Tax Stamp for the purpose of Rule 150 ZH, Verification of reports of unauthorized stoppage of production.
• Timely action on reports regarding any operation failure, damage, disruption, or tampering in the Track & Trace System by the manufacturer or importer of the specified goods Inspection/verification of tax stamps, banderoles, stickers, labels, barcodes, etc. which are reported by the manufacturer or importer to be defective, damaged, or do not conform to the required specification.
• To secure any non-operative production lines, reported by the manufacturer or importer, through security seal and to register the action into the system.

Sources added that the performance of IREN is not satisfactory due to which member IR operations have asked RTOs to initiate a crackdown against illegal goods.

It is pertinent to note that the Track and Trace system, rolled out during FY 2021-22, is gradually being expanded to cover all imports and domestic production of designated sectors. FBR claimed that it brought 20% of imports and domestic production of such sectors under its purview until the last fiscal year 2022-23.