Senate Body Questions FBR Over Missing Tobacco Tax Details

A sub-committee of the Senate Standing Committee on Interior and Narcotics sought complete details of taxes assessed, collected and outstanding from the tobacco industry, along with records of all registered tobacco factories over the past 20 years, after expressing dissatisfaction over the Federal Board of Revenue’s failure to provide a comprehensive briefing on tax collection from tobacco manufacturers.

During the discussion on the tobacco sector, the committee was informed that Pakistan Tobacco Company and Philip Morris Pakistan were among the country’s major tax-paying tobacco companies. Expressing dissatisfaction with the FBR’s response, the convener said the board had failed, despite repeated directions, to provide a comprehensive briefing on tax collection from tobacco manufacturers.

The committee sought complete details of taxes assessed, collected and outstanding from the tobacco industry, along with records of all registered tobacco factories over the past 20 years.

The sub-committee, which met at the Old PIPS Hall in Parliament Lodges, took serious notice of the FBR’s failure to submit data on tax evasion in the tobacco sector. Javed Iqbal Tarar, chief sales tax at the FBR, was unable to provide the information previously sought by the committee, after which he was asked to leave the meeting.

The meeting reviewed matters relating to tax evasion in the tobacco sector, public awareness campaigns, narcotics control and enforcement measures undertaken by relevant departments.

The Press Information Department briefed the committee on media awareness campaigns conducted on behalf of various ministries and divisions. Officials said awareness campaigns were broadcast through 92 television channels and other media platforms, with all content and expenditure funded by the sponsoring ministry or division. Campaigns against the sale of illegal cigarettes were carried out on behalf of the FBR.

The convener directed the PID to submit complete details of all media contracts, campaign expenditures and agreements with television channels.

The committee was informed that Rangers personnel had been deployed by the FBR to assist in curbing tax evasion in the tobacco sector. Referring to previous briefings, Senator Abro said Customs had earlier reported tobacco-related taxes amounting to Rs. 75 billion, while later deliberations suggested that nearly Rs. 40 billion remained outstanding.

The committee directed the FBR to submit documentary evidence regarding the outstanding taxes, a complete list of tobacco companies and their brands, details of imported raw materials, and revenue and tax collection data for the last two decades.

It also directed the Federal Investigation Agency to investigate an alleged corruption case involving Badshah Wazir, particularly over raw materials imported for tax-exempt areas that reportedly never reached their intended destinations.

Senator Talha Mahmood stressed that the committee’s proceedings should remain impartial and evidence-based.

On narcotics control, the committee received a consolidated report from Punjab Police covering the past 20 years, including data on narcotics seizures, registered cases, convictions, pending trials and disposal of confiscated drugs.

The committee was informed that the Anti-Narcotics Force accounted for around 49pc of the country’s total narcotics seizures during the previous year. Officials also noted a growing shift in drug abuse patterns from plant-based narcotics to synthetic and chemical drugs.

Members discussed the possibility of using confiscated narcotics for pharmaceutical or research purposes, subject to the applicable legal framework, instead of destroying them entirely.

The DIG South Karachi briefed the committee on anti-narcotics operations conducted between 2013 and 2026, saying more than 105,000 narcotics cases had been registered and around 127,000 suspects arrested during the period.

The committee was also briefed on the high-profile drug trafficking case involving Anmol, alias Pinky. Expressing concern over conflicting accounts presented in earlier meetings regarding her arrest, the convener questioned why she had been given extensive police escort during court appearances and directed law enforcement agencies to investigate her alleged links with influential individuals.

Members were told that 28 cases had been registered against Anmol, while 35 delivery riders linked to her narcotics network had been arrested. Officials said certain Nigerian nationals residing in Nishtar Colony, Lahore, were allegedly part of the network.

Senator Talha also sought detailed information from Pakistan Customs regarding imports and exports through the country’s borders. He voiced concern over under-invoicing of mining raw materials and asked for comprehensive data on trade through the Sust border, as well as import and export activities with Iran.

At the end of the meeting, the convener summoned the inspectors general of police of Sindh, Punjab and Balochistan to attend the next meeting of the sub-committee and directed all relevant departments to provide the requested information before the next session.