Islamabad, April 22, 2024 – In a significant move to combat the menace of illegal tobacco trade and to protect the nation’s revenue, the Federal Board of Revenue (FBR) launched a comprehensive crackdown across the country, raiding multiple outlets involved in selling counterfeit and non-stamped cigarettes.
The operation, led under the supervision of FBR Chairman Malik Amjed Zubair Tiwana and Member Inland Revenue (Operations) Mir Badshah Khan Wazir, targeted 4,652 retail outlets, resulting in the sealing of 33 shops found guilty of trading illicit tobacco products. During these raids, the enforcement teams seized 1,235 packets of cigarettes, valued approximately at Rs. 96 million.
A total of 204 teams, involving 1,047 personnel, took part in the extensive operation aimed at curtailing the illegal tobacco market that significantly harms the fiscal framework of the country by evading due taxes and duties.
“The drive against illicit tobacco is not just about protecting revenue; it’s also about upholding law and order and ensuring that legitimate businesses are not undercut by illegal operators,” said FBR Chairman Tiwana in a press statement. “Our teams are working tirelessly, with limited resources, to address this complex challenge.”
The FBR officials emphasized that the crackdown is part of a larger strategy to reinforce compliance and regulatory mechanisms that have been systematically undermined by the illicit trade networks. Despite facing logistical constraints and manpower limitations, the FBR’s Inland Revenue Enforcement Network has been steadfast in its efforts to dismantle the supply chains of counterfeit tobacco products.
Member Inland Revenue Wazir commended the personnel involved in the operations. “These enforcement actions send a clear message that the government will not tolerate any form of economic sabotage that illicit tobacco trade represents,” Wazir stated. He further warned that repeat offenders would face even more stringent actions, including possible arrests, in future operations.
The FBR also announced that it would continue its rigorous approach towards businesses and individuals who persist in engaging in illicit tobacco trade, vowing to impose strict penalties and pursue legal proceedings against those found in violation of the tax laws. The ongoing efforts are part of the FBR’s broader mission to ensure economic justice and increase the tax base, which is critical for the country’s development goals.
This crackdown comes at a time when the government is intensifying its efforts to improve tax collection and manage fiscal deficits. The illegal tobacco market not only causes substantial revenue losses but also poses significant health risks to consumers using non-regulated products.
Industry experts have applauded the FBR’s proactive approach, noting that a sustained enforcement drive could help recalibrate the market dynamics and encourage fair competition. Economic analysts suggest that strengthening the enforcement mechanisms and increasing public awareness about the repercussions of buying and selling illegal tobacco products are essential steps towards a robust tax system.
As the FBR prepares for the next phase of its enforcement plan, the message to the illicit traders is clear: compliance is non-negotiable, and the government is committed to clamping down on all forms of fiscal evasion to secure a healthier economic future for Pakistan.
