MUZAFFARABAD: The Azad Jammu and Kashmir (AJK) Central Board of Revenue (CBR) has directed all cigarette manufacturers in the state to install the latest monitoring [Track and Trace] system in their units by the end of next month, failing which legal action would be taken against them.

“All cigarette manufacturing units in the territory must ensure installation of the latest manual/automatic applicators including tax stickers/stamps, on the pattern of Pakistan in consultation with the relevant legally authorised licence holder company, by August 1, 2023, or else the clearance of their products will be halted followed by initiation of legal action, including closure under rules of the units concerned,” said a spokesperson He recalled that the AJK’s cigarette manufacturers and the representatives of the AJK Inland Revenue Department had signed agreements on April 14 regarding installation of the track and trace system in the tobacco sector.

On May 31, he added, under special arrangements a team from the Federal Board of Revenue’s (FBR) Directorate General of Digital Initiatives undertook physical visits of all cigarette units in AJK along with the legally authorised license holder firm.

In the wake of these steps, it was binding upon all cigarette manufacturers in Azad Kashmir to install machinery relevant to the track and trace system in their units for which the deadline of August 1 had been fixed, the spokesman added.

He made it clear that legal formalities would be fulfilled to bring the production and consignment (delivery) mechanism of cigarettes in consonance with the procedure adopted by FBR.

The supremacy of law would be upheld and distribution of cigarettes from any unit failing to meet the condition before or by the deadline of August 1 would not be allowed, he declared.

Published in Dawn, June 17th, 2023