ISLAMABAD, Jan 4: The tax authorities have decided to launch a country-wide drive against the smuggling of foreign branded cigarettes that is causing millions of loss to the national kitty.

Well-placed sources told Dawn on Saturday that the decision was taken following the decline registered in the central excise duty (CED) collected from cigarettes during the first six months of the current financial year over the corresponding period of last year.

The tax authorities collected central excise duty at the rate of Rs19.3 billion during the first half year against Rs21 billion collected during the same period last year, showing a decline of 8 per cent.

Similarly, the tax authorities collected Rs2.9 billion as central excise duty in December 2002 against Rs3.3 billion over corresponding month of last year, showing a decline of 12 per cent.

According to the sources, the decline registered in the CED collection was due to transfer of items from CED to sales tax in the last budget.

On the other hand, the sources said that the unabated smuggling of cigarettes across the porous boarder between Afghanistan and Pakistan was on the rise despite the presence of anti-smuggling forces at the borders.

The collectors of central excise collectorate have been intimated by the CBR to come up with proposals and procedures to beat the evaders of taxes.

They were also directed to carry out investigation in other sectors as well to reduce the chances of tax evasion by the taxpayers.

An official source in the CBR told Dawn on Saturday that to achieve the agreed target of Rs460 billion with International Monetary Fund (IMF), it was necessary to take such steps for controlling the smuggling of cigarettes as it was one of the major spinner of CED duty collection.

The CBR will have to achieve Rs260 billion during the January-June period of the current financial year against the last year collection of Rs231 billion, showing an increase of 13 per cent.

The official said that the target of second half year was achievable as was cleared from the fact that the last year in the latter half year revenue collection recorded at Rs231 billion, which was more than 35 per cent higher than the collection of first half of Rs174.5 billion.