PESHAWAR: The Peshawar High Court has rejected the petitions of 23 cigarette factories against the Federal Board of Revenue’s order for installation of closed-circuit television cameras on their premises.

A bench consisting of Justice Syed Arshad Ali and Justice Mohammad Faheem Wali upheld the Aug 18, 2025, letter sent by the project director of tracking and tracing system (TTS) at FBR to the companies for installing CCTV cameras.

It pronounced a short order and will release the detailed judgement later.

The petitions, filed by Universal Tobacco Company and several other firms, had requested the court to declare the impugned letter illegal and set it aside.

Declares relevant FBR letter in line with law

The petitioners sought the court’s declaration that the TTS letter against the cigarette units solely owned by companies of Pakistani citizens is discriminatory and not sustainable in the eyes of the law.

They also requested the court to rule against the actions taken by the respondents in pursuance of the impugned letter.

Last August, the high court ordered the de-sealing of the factories sealed due to non-compliance with the impugned letter and directed the FBR not to take any adverse action against them on the basis of non-compliance of the letter.

Senior lawyer Aamir Javed appeared for the respondents, including FBR, and contended that a significant amount of revenue was involved in the matter and the issue solely related to the installation of the CCTV cameras in the production halls.

He argued that the said installation of CCTV cameras had no adverse effect on the business activities of the petitioners.

The lawyer claimed that the respondents had reports about tax evasions by some of the companies due to which the impugned letter was issued to ensure transparency in their affairs.

He argued that the relevant rules were amended in 2025 following which the letter was issued. He added that through installations of the CCTV cameras the respondents would be having a clear picture regarding production by the petitioners companies.

Mr Javed contended that the move was aimed at monitoring the operations functionality of the cigarette manufacturing units and to provide access to FBR to their video feed.

He contended that a number of extra and penal measures had already been put in place against the cigarette manufacturers of the province, which included deployment of Inland Revenue officers under Section 40-B of the Sales Tax Act as well as a system of electronic surveillance under Section 40-C of the Act.

The counsel added that despite that, another unreasonable demand was made from the cigarette industry of this province only which required them to install CCTV cameras and per the specifications given in the impugned FBR letter.

He contended that the petitioner companies scrupulously abided by all applicable laws and regulations, including the Sales Tax Act, 1990, Income Tax Ordinance, 2001, and Federal Excise Act, 2005, and the rules and regulations made under them.

Mr Javed said that in 2019, amendments were made to Chapter XIV-B of the Sales Tax Rules, 2006.

He said that through the amended rules and section 40-C of the Act an electronic monitoring the TTS was introduced for the production, import and supply chain of tobacco products, beverages, sugar, fertiliser and cement.

The lawyer said that the petitioner companies installed the TTS at substantial costs and linked it with the licensee authorised by FBR on Nov 2, 2023.

He added that besides the electronic surveillance of the production process, the manufacturing facilities were also being monitored round the clock by the Regional Tax Office Peshawar, the field office of the FBR.

Published in Dawn, December 11th, 2025