Hyderabad, November 17, 2024 – In a significant move to combat tax evasion, the Regional Tax Office (RTO) Hyderabad has confiscated a massive quantity of non-duty paid cigarettes.
This operation is part of an ongoing nationwide campaign by the Federal Board of Revenue (FBR) against tax and duty evasion in the tobacco sector.
Officials from RTO Hyderabad revealed that the crackdown targeted multiple retailers in Hyderabad City suspected of selling counterfeit and non-duty-paid cigarettes. An estimated one million sticks of illicit cigarettes were seized during the operation. The seized inventory reflects the widespread issue of tax evasion in the tobacco market, a sector that plays a vital role in contributing to Pakistan’s national revenue.
The crackdown was executed under the directives of Chief Commissioner Inland Revenue (CCIR) Qazi Hifzurahman, emphasizing the RTO’s commitment to eradicating illegal trade practices. “The operation will continue unabated,” officials stated, vowing to pursue those involved in the sale of counterfeit cigarettes. Describing the perpetrators as “merchants of death,” the RTO pledged to hold violators accountable and ensure strict adherence to tax compliance laws.
The tobacco sector is a major contributor to Pakistan’s revenue, generating substantial funds through duties and taxes. However, tax evasion in the form of counterfeit and non-duty-paid cigarettes poses a significant challenge to the FBR’s revenue collection efforts. These illicit practices not only deprive the government of critical funds but also encourage the proliferation of low-quality, unregulated products in the market.
Despite stringent monitoring mechanisms, many tax evaders exploit gaps in the system, causing immense financial losses to the state. The confiscation of such a large quantity of illegal cigarettes highlights the scale of the problem and underscores the importance of continued enforcement efforts.
The RTO Hyderabad’s initiative aligns with the FBR’s broader agenda to curb illicit trade and safeguard the economy. By targeting offenders in the tobacco industry, authorities aim to send a strong message about the consequences of tax evasion while protecting the legitimate market from unfair competition.
This operation is expected to bolster the government’s revenue collection and ensure compliance among businesses, marking another step toward financial stability and accountability in the country.
