Islamabad, July 22, 2025 – The Federal Board of Revenue (FBR) has introduced a more stringent procedure for the removal and movement of processed tobacco from Green Leaf Threshing (GLT) units and associated warehouses.
The move, aimed at curbing tax evasion and improving traceability, was announced through Federal Excise General Order No. 01 of 2025, issued on July 21, 2025.
Under the revised regulations, no processed tobacco will be allowed to leave a GLT unit or a warehouse unless the Federal Excise Duty (FED) has been paid in full and specific compliance conditions have been met. The FBR emphasized that the updated procedure is designed to strengthen oversight of the tobacco supply chain, which remains a high-risk sector for revenue leakage.
One of the central requirements is the issuance of an S Track invoice. GLT units must generate this invoice using the FBR’s S Track system, clearly indicating the recipient, quantity, and destination of the processed tobacco. In addition, the FBR has made it mandatory for the Chief Commissioner Inland Revenue (IR) to be notified at least two days prior to the removal, including detailed information such as the GPS location of the warehouse.
All removals of processed tobacco must be conducted in the presence of an Officer of Inland Revenue. Furthermore, the goods can only be relocated to a publicly accessible storage facility or directly to a licensed cigarette manufacturing unit, subject to prior written intimation and approval from the Chief Commissioner-IR. Unauthorized movements or relocation without proper documentation will be deemed violations of federal excise rules.
For tobacco intended for export in unmanufactured form, the rules outlined in Federal Excise General Order No. 01 of 2024, dated August 28, 2024, will continue to apply.
Additionally, both the GLT unit and the warehouse manager must maintain detailed movement records using Annex-I and Annex-II forms as specified in the 2024 Order. These records are essential for cross-verification by Inland Revenue officers, who are granted unrestricted access to any facility used for storing processed tobacco.
The FBR reiterated its commitment to implementing strong enforcement mechanisms in the tobacco sector to plug revenue gaps and ensure full regulatory compliance across the industry.