Updated law allows confiscation of counterfeit products, untaxed goods and vehicles used for transportation
ISLAMABAD: The Federal Board of Revenue (FBR) has been empowered to seize cigarettes, beverages and other excisable goods on which federal excise duty has not been paid, under the updated Federal Excise Act, 2005, revised up to June 30, 2026.
The amended provisions strengthen the tax authority’s enforcement powers against illicit trade, counterfeit products and duty-evaded goods by allowing the seizure of items manufactured, transported or sold in violation of excise laws.
FBR authorised to seize untaxed excisable goods
According to the revised Federal Excise Act, counterfeit cigarettes and beverages produced unlawfully, along with other dutiable goods on which excise duty has not been paid as required under the law and relevant rules, will be liable to seizure.
The provisions also cover goods that fail to comply with mandatory identification and tracking requirements.
Authorities can confiscate products found without:
Tax stamps
Bar codes
Banderols
Stickers
Labels
Other prescribed tracking marks
The measure also applies to counterfeit versions of these identification features under Section 45A of the Federal Excise Act.
Goods without monitoring systems face action
The updated law further allows seizure of products that are required to be monitored through a production monitoring system but are manufactured, produced, transported, removed or handled without following the prescribed tracking mechanism.
The FBR has also been granted authority to seize vehicles or other conveyances used for the movement, transportation or carriage of such goods.
Crackdown on tax evasion
The enhanced enforcement powers are aimed at reducing revenue losses caused by the production and supply of duty-evaded excisable products.
Officials said the measures would improve documentation and strengthen monitoring across sectors vulnerable to tax evasion, particularly the tobacco and beverage industries.
The FBR has increasingly expanded the use of digital tracking systems, tax stamps and enforcement measures to ensure compliance with federal excise regulations and prevent the circulation of illicit products.
Strengthening excise duty enforcement
The revised provisions form part of broader tax administration reforms aimed at improving transparency, increasing revenue collection and discouraging illegal manufacturing and distribution networks.
By allowing the seizure of unpaid duty goods and related transportation vehicles, the government expects stronger enforcement of excise laws and improved compliance among manufacturers and suppliers.