12.8m smuggled cigarette sticks seized by FBR

Updated March 07, 2020

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The impact of these seized cigarettes on federal excise duty and sales tax collection is around Rs35.66m and Rs27.34m. — AFP/File
The impact of these seized cigarettes on federal excise duty and sales tax collection is around Rs35.66m and Rs27.34m. — AFP/File

ISLAMABAD: The Karachi-based Intelligence and Investigation Department of the Inland Revenue has seized 12.88 million sticks of cigarettes involving duty and tax evasion to the tune of Rs63m.

Official sources told Dawn on Friday that the raid was conducted on a tobacco go down located at Shershah, Karachi where 1,288 cartons of non-duty paid cigarettes were parked at a warehouse.

During the preliminary investigation, it was found that neither the warehouse nor any record of inward and outward inventory of these excise-able goods was maintained at the premises.

It is estimated that the impact of these seized cigarettes on federal excise duty and sales tax collection is around Rs35.66m and Rs27.34m respectively.

The sources said the warehouse in-charge confirmed that no record is being maintained at the premises under Federal Excise Act, 2005.

In the absence of any proof of payment of legitimate duties and taxes, the inventory will not be displaced, the source said.

The team also visited the company office and the stock was seized on account of non-production of valid documents.

Documentary trail along with evidence of payment have been sought failing which necessary action will be taken as per law, the official added.

The drive is part of the Federal Board of Revenue’s direction against smuggling and selling of non-duty paid items in the local markets.

Published in Dawn, March 7th, 2020