FBR seizes illicit cigarettes worth Rs20m

The Federal Board of Revenue of FBR has seized illegal cigarettes worth Rs20.14 million in the month of November.

A report issued by the board’s Inland Revenue Enforcement Network on Friday revealed that taxes and duties amounting to Rs17.2 million were evaded on the purchase of cigarettes.

In the first five months of the financial years 2021-22, the department seized non-duty paid cigarettes worth Rs178 million. During these purchases, Rs143 million tax was evaded.

According to the FBR, to counter this, the government has established a track and trace system for the tobacco industry to keep an eye on the illegal trade of cigarettes.

A similar system was recently established to monitor the supply chain of the sugar industry as well. Under the mechanism, teams are formed by the FBR that conduct raids and track non-custom paid goods moving out of factories and warehouses.

Earlier this month, PTI MNA Dr Nausheen Hamid revealed that the number of smokers in Pakistan has increased dramatically.

In Pakistan, smoking reportedly causes 11% of the total deaths due to the increased availability of cigarettes at lower prices.

According to a 2013 study by the Chicago Institute for Health Research at the University of Illinois, over 22 million (19%) Pakistani adults aged 18 or above use some form of tobacco.

The study citing experts says that “cigarette prices in Pakistan are among the lowest in the world.”

Cigarette excise taxes in Pakistan account for just over half of the price paid by users. “This is below the level in countries that have taken a comprehensive approach to reducing tobacco use, where excise taxes account for 70% or more of the retail price,” the study said.