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FBR, Pakistan’s national tax collecting agency, plays a crucial role in the country’s economy. Pakistan Revenue is committed to providing readers with the latest updates and developments regarding FBR activities.

  • FBR defers action against traders till September 30

    FBR defers action against traders till September 30

    ISLAMABAD: Federal Board of Revenue (FBR) has decided not to take any adverse action under tax laws against traders till September 30, 2019 regarding information obtained through Computerized National Identity Card (CNIC).

    FBR Chairman Shabbar Zaidi held a meeting with all groups of traders of Pakistan on Thursday at FBR and discussed various issues about the traders.

    It has been agreed with consensus that no adverse action under the Income Tax Ordinance 2001 and Sales Tax Act, 1990 will be undertaken against the traders merely on the basis of information emanating from providing of CNIC under the Sales Tax Act, 1990 as required under the Finance Act, 2019 for traders till September 30, 2019.

    There will be discussion between the associations and bodies of the traders for the finalization of Scheme for small shopkeepers for which drafts have been furnished by various trade bodies which will be taken into consideration by the FBR.

    The condition of obtaining CNIC number for unregistered persons at the time of supplies by registered person was to applicable from August 01, 2019.

    The condition has been proposed to be applicable from July 01, 2019 through Finance Bill 2019.

    However, through Finance Act, 2019 this condition was to applicable from August 2019.

    An amendment has been introduced through Finance Bill 2019 to Section 23 of Sales Tax Act, 1990 under which it was now required specifically to mention particulars on invoices in Urdu or English language.

    Tax Invoice is also required to reflect CNIC Number of recipient in case supplies are made to unregistered person.

    The Finance Bill 2019 also proposed to require a supplier of textile yarn and fabric to mention count, denier and construction, in addition to description, on tax invoice at the time of making taxable supply.

  • Procedure issued to sanction sales tax refund claims of importers

    Procedure issued to sanction sales tax refund claims of importers

    ISLAMABAD: Federal Board of Revenue (FBR) issued procedure for sanctioning refund claims on sales tax collected against imported goods.

    The FBR issued SRO 918(I)/2019 on Thursday to amend Sales Tax Rules, 2006.

    A new rule 34A is inserted related to sanction of refund claims of import-related sales tax by the collectorates of customs.

    The FBR said that sales tax refund filed by an importer for import-related sales tax paid in excess due to inadvertence, error or misconception, or as result of a competent adjudication or appellate authority, claimed within the period as prescribed under section 66 of the Act, may be decided and allowed by the concerned officer of Customs, not below the rank of an Assistant Collector subject to sub-rules (2) and (3) below.

    (2) In the case of registered person while applying for refund to the concerned Customs Collectorate, the applicant must endorse a copy of the refund application to the Refund Division of the concerned RTO or LTU. The concerned Collectorate of Customs shall not process the claim unless a confirmation from suchInland Revenue office, that no adjustment or payment of the amount claimed in refund has been made, has been received.

    The concerned RTO or LTU on receipt of a reference from Collectorate of Customs shallcommunicate such confirmation, or otherwise, within thirty days of receipt of the reference.

    (3) In case of an unregistered importer, the refund shall be processed by the concerned Customs Collectoratewithout prior reference to RTO or LTU.

    (4) The sales tax refund files after issuance of refund payment order by the relevant Customs officer shall be sent through proper channel, in the case of registered person to the RTO or LTU concerned, and in the case of unregistered person to the nearest RTO where the customs station is located. The refund sanctioning authority of the Customs Collectorate shall mention the number and date, etc. of RTO’s or LTU’s confirmation of regarding non-adjustment of tax involved or non-payment of refund, if applicable, in his sanction order.

    (5) On receipt of such sanction order from Customs Collectorate by the concerned officer-in-charge in RTO or LTU, he shall make the entry of the sanction order in the Computerized System, and after obtaining permission of the Commissioner concerned, generate RPO of the sanctioned amount for electronic transmission to CSTRO. The amount of such sales tax refund shall be debited from the head of sales tax (on imports).

  • FBR issues procedure for zero-rated supplies to Duty Free Shops

    FBR issues procedure for zero-rated supplies to Duty Free Shops

    ISLAMABAD: Federal Board of Revenue (FBR) has issued procedure for zero-rated sales tax supply to duty free shops.

    The FBR on Thursday said that a duty free shop (DFS), duly licensed by the Customs authorities, and entitled to receive zero-rated supplies under serial No. 3 of the Fifth Schedule to the Act, for the purpose of making supplies to the passengers in terms of Customs baggage rules, may observe the following procedure for making zero-rated purchases:−

    (a) The DFS shall get itself registered under the Act, furnish monthly returns and maintain records as stipulated under the Act.

    (b) The DFS will apply to the respective Commissioner Inland Revenue for grant of authorization for taking sales tax free delivery of the goods intended to be purchased from a specified registered manufacturer. In the application DFS will exactly specify the description and quantity of goods besides particulars including sales tax registration number of the manufacturer-cum-supplier.

    Only such goods shall be included in the application as DFS intends to sell against duty free allowances under different baggage concessions.

    (c) At the time of filling application under (a) above, DFS will furnish an indemnity bond in a proper form to the effect that in case goods intended to be purchased free of sales tax are used for the purpose other than the purpose of supplying the same against duty free allowance under different baggage concessions, DFS shall pay the amount of sales tax invoiced in such goods besides additional tax payable under section 34 of Sales Tax Act, 1990.

    Original indemnity bond shall be retained under safe custody in the concerned RTO or LTU and two attested photocopies of the accepted indemnity bond shall be given to DFS and DFS shall give one copy to the concerned manufacturer.

    (d) on the basis of authorization given by the Commissioner Inland Revenue, after acceptance of the indemnity bond furnished by DFS as aforesaid, the manufacturer shall deliver the goods against a zero-rated invoice issued in the name of DFS and quote the reference number and date of authorization issued by the Commissioner Inland Revenue.

    The zero-rated invoice shall show the value of goods in rupees as well as in US dollar. The goods shall be delivered to DFS only after affixing irremovable sticker containing a caution to the effect that it is meant exclusively for supply to and sales by DFS under customs baggage rules.

    (e) DFS shall pay price of the goods in foreign currency (US dollars) which shall be surrendered by the manufacturer to the State Bank of Pakistan and manufacturer shall receive the payment in Pak rupees as per the prevailing State Bank of Pakistan’s procedures and foreign exchange regulations.

    (f) on receipt of goods DFS shall issue a certificate of receipt indicating the reference number and date of the aforesaid authorization and serial number and date of zero-rated invoice.

    This certificate shall be duly attested by the customs staff posted at duty free shops. A copy of this certificate shall be sent each to the manufacturer as well as to the Commissioner Inland Revenue.

    (g) DFS shall maintain proper separate records of the zero-rated purchases and sales of goods purchased under this rule. Full particulars of the passengers buying these goods under baggage rules shall be invariably mentioned in the records. Similarly, the manufacturer shall maintain proper record relating to the supplies made to DFS without payment of sales tax. Both DFS and the manufacturer shall present these records to the sales tax staff for inspection or audit as and when required.

    (h) the said documents shall be furnished in original with a set of photocopies and returned to the manufacturer after tallying an endorsement of verification on the photocopies by the officer-incharge of Refund Division of the Regional Tax Office (RTO).

    Refund shall be processed and sanctioned in accordance with chapter V of the Sales Tax Rules, 2006 treating the claimant as manufacturer-cum-exporter.

    (i) DFS shall procure goods under this order to meet its requirements for a period not exceeding three months and shall ensure that these goods do not find way in the local market. DFS shall be responsible to pay sales tax and additional tax in case any such goods are found being sold in the local market.

    (j) the indemnity bond furnished by DFS shall be released by the Commissioner Inland Revenue only after satisfying himself either through audit or otherwise that goods have been sold by DFS only against duty free allowances under the relevant baggage concessions.

  • 2019/2020: Withholding tax rates on insurance premium

    2019/2020: Withholding tax rates on insurance premium

    ISLAMABAD: The insurance companies are required to deduct/collect withholding tax only from persons not appearing on the Active Taxpayers List (ATL) at the time of collection of insurance premium.

    Federal Board of Revenue (FBR) issued withholding tax card for tax year 2019/2020 and updated tax on insurance premium under Section 236U of Income Tax Ordinance, 2001.

    The FBR said that advance tax to be collected at the time of collection of insurance premium from a person whose name is not appearing in the active taxpayers’ list, by every insurance company in respect of General Insurance Premium and Life Insurance Premium.

    The withholding tax rates shall be:

    General Insurance Premium at four percent

    Life Insurance Premium if exceeding Rs0.3 million in aggregate per annum at one percent

    In other cases there will be not tax collection.

  • Customs intelligence official awarded ‘dismissal from service’ on corruption charges

    Customs intelligence official awarded ‘dismissal from service’ on corruption charges

    ISLAMABAD: Federal Board of Revenue (FBR) has imposed major penalty of ‘dismissal from service’ upon customs intelligence official on the charges of corruption, misconduct and inefficiency.

    In a notification issued on Wednesday, the FBR said that disciplinary proceedings under Government Servants (Efficiency & Discipline) Rules, 1973 were initiated against Muhammad Afzal, Superintendent (BS-16) (Time Scale BS-17) (under suspension), Directorate of Intelligence & Investigation-Customs, Karachi vide Charge Sheet No.2(90)/2012-Cus-III dated 20.04.2017.

    Ms. Saadia Sheeraz, the then Additional Director, Directorate of Customs Valuation, Karachi was appointed as Inquiry Officer to conduct inquiry on account of various acts of omission and commission committed by the accused officer constituting “Inefficiency”, “Misconduct” and “Corruption”.

    The Inquiry Officer submitted inquiry report dated 05.06.2018, according to which the charges of “Inefficiency”, “Misconduct” and “Corruption” were established against the accused officer.

    A Show Cause Notice dated 19.06.2018 was issued to the accused officer and in response, he submitted his defence reply. After considering the inquiry report, reply of the accused to the Show Cause Notice and his oral submissions during the personal hearing with the Authorized Officer on 01.08.2018, the accused officer has been found guilty of “Inefficiency”, “Misconduct” and “Corruption” under rule 3(a),(b)&(c) of the Government Servants (E&D) Rules, 1973.

    The Member (Admn), being the Authority in this case, after having considered all aspects of the case and the recommendations of the Authorized Officer has, therefore, imposed the major penalty of “Dismissal from service” upon Muhammad Afzal, Superintendent under rule 4(1)(b)(iv) of the Govt. Servants (Efficiency & Discipline) Rules, 1973 with immediate effect.

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  • FBR promotes 57 officials to post of superintendents (BS-16)

    FBR promotes 57 officials to post of superintendents (BS-16)

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday promoted 57 officials including superintends, inspectors, intelligence officers of customs department to the post of Superintendent (BS-16) and notified their transfer and postings with immediate effect and until further orders.

    Following officers have been promoted and posted to new places:

    01. Atique Ahmed Deputy Superintendent posted at the same place Regional Tax Office (RTO) III Karachi.

    02. Asad Mirza, Deputy Superintendent posted to Model Customs Collectorate (Preventive) Quetta from MCC Appraisement Quetta.

    03. Nawabzada Javed Haider, Inspector posted to Directorate of Transit Trade, Karachi from MCC Hyderabad.

    04. Shuja Salam, inspector posted to Directorate of Transit Trade, Karachi from MCC Hyderabad.

    05. Saudal Hasan, Inspector posted to Directorate of Transit Trade, Quetta from MCC Hyderabad.

    06. Ghulam Muhammad, intelligence officer posted to Intelligence and Investigation, FBR, Hyderabad from Intelligence and Investigation, FBR Karachi.

    07. Younis Ata, inspector posted to same place MCC Preventive Quetta.

    08. Ehtasham-ul-Haq, inspector posted to same place MCC Faisalabad.

    09. Saleem Shah, Inspector posted to same place MCC Preventive Quetta.

    10. Tariq Sultan, inspector posted to MCC Preventive Quetta from MCC Appraisement Quetta.

    11. Arshad Zubair, inspector posted to MCC Preventive Quetta from MCC Appraisement Quetta.

    12. Muhammad Asif Zaman, Inspector posted to same place MCC Preventive Quetta.

    13. Faisal Siddique, Inspector posted to MCC Preventive Quetta from MCC Appraisement Quetta.

    14. Maqsood Ahmed Jafri, inspector posted to same place Corporate RTO Karachi.

    15. Habib-ur-Rehman, Inspector posted to same place RTO III Karachi.

    16. Malik Muhammad Aslam, Inspector posted to same place Large Taxpayers Unit (LTU), Lahore.

    17. Riasat Ali Javed, inspector posted to same place MCC Preventive Lahore.

    18. Younus Qadri, intelligence officer posted to same place Intelligence and Investigation Lahore.

    19. Muhammad Ashraf Bhatti, inspector posted to same place CRTO Lahore.

    20. Malik Muhammad Ashraf, Inspector posted to same place MCC Preventive Karachi.

    21. Tariq Mehmood Butt, inspector posted to same place RTO Gujranwala,

    22. Naveed Ijaz Bajwa, inspector posted to MCC Preventive Lahore from MCC Sialkot.

    23. Muhamamd Aslam, Inspector, posted to MCC Preventive Peshawar from MCC Appraisement Peshawar.

    24. Zahid Habib Ansari, Inspector posted to same place MCC Faisalabad.

    25. Mir Zaman, inspector posted MCC Preventive Peshawar from MCC Appraisement Peshawar.

    26. Syed Muhamamd Ali, inspector posted to same place MCC Appraisement Lahore.

    27. Muhammad Aslam Makhdoom, inspector posted MCC Preventive Quetta from MCC Appraisement Quetta.

    28. Irfan Mumtaz, Inspector posted to same place MCC Faisalabad.

    29. Mansab Ali Dogar, inspector posted to same place MCC Multan.

    30. Mumtaz Ali Nizamani, inspector posted to same place RTO-III Karachi.

    31. Masood Sadiq Tarar, inspector posted to same place MCC Multan.

    32. Sadaqatum Nazar Ali, inspector posted to MCC Preventive Lahore from MCC Appraisement Lahore.

    33. Muhammad Zahid Nadeem, Inspector posted to same place Directorate of Internal Audit (Customs), Lahore.

    34. Syed Mahmood Pervez, inspector posted to same place CRTO Lahore.

    35. Rai Waqar Ahmad, inspector posted to same place MCC Preventive Lahore.

    36. Zafar Ullah Khan Niazi, inspector posted to MCC Preventive Lahore from Internal Audit (Customs) Lahore.

    37. Saleem Raza, inspector posted to same place MCC Preventive Lahore.

    38. Sohail Iqbal, inspector posted to MCC Preventive Lahore from MCC Appraisement Lahore.

    39. Qaiser Ehsan Rao, inspector posted to same place MCC Preventive Lahore.

    40. Mazhar Elahi, inspector posted to MCC Preventive Peshawar from MCC Appraisement Peshawar.

    41. Seikh Mudassar Ahmad, inspector posted to MCC Preventive Peshawar from MCC Appraisement Peshawar.

    42. Rai Khalid Javed, inspector posted to same pace MCC Multan.

    43. Tariq Hussain Bhutto, inspector posted to Directorate of Transit Trade Quetta from MCC Hyderabad.

    44. Shahid Naseem Joiya posted to MCC Preventive Lahore from Directorate of IPR Enforcement (Central) Lahore.

    45. Ibrar Hussain, Inspector posted to same place MCC Preventive Lahore.

    46. Ashfaq Ahmad, inspector posted to same place MCC Multan.

    47. Mirza Iqbal Hussain, inspector posted to same place MCC Preventive Lahore.

    48. Muhammad Saeed, inspector posted to same place MCC Preventive Lahore.

    49. Muhammad Mahmood Anwar, inspector posted to same place MCC Preventive Lahore.

    50. Abdul Qayyum, inspector posted to same place MCC Preventive Peshawar.

    51. Babar Rehman, inspector posted to same place MCC Multan.

    52. Naseem Mahmood Cheema, inspector, posted to same place MCC Preventive Lahore.

    53. Malik Sher Afzal, inspector posted to same place MCC Gilgit Baltistan.

    54. Syed Shahid Abbas, inspector posted to same place MCC Appraisement Lahore.

    55. Haleem Ullah, inspector posted to Intelligence and Investigation, FBR, Islamabad from MCC Gilgit Baltistan.

    56. Khawaja Hur Abbas, inspector posted to same place MCC Preventive Lahore.

    57. Anjum Sheraz, Inspector posted to MCC Multan from MCC Appraisement Lahore.

    FBR said that the promotions of above mentioned officials would take effect from the date of their joining / charge assumption, subject to the condition that no disciplinary proceedings were pending against them.

    They will be on probation for a period of one year, extendable for further period, not exceeding one year, provided that if no order is issued by the day following the termination of probationary period, the appointment shall deem to be held until further order.

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  • FBR allows retail price printing relaxation on imported consumer items

    FBR allows retail price printing relaxation on imported consumer items

    ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday extended relaxation on mandatory printing of retail prices on imported consumer items after receiving several representations from stakeholders.

    On the basis of representations, the FBR granted relaxation by issuing sales tax notification.

    The FBR said that for the imports from North and South America, if bill of lading date is prior to June 30, 2019, the condition of printing retail price is relaxed up to August 31, 2019, subject to the condition that the importer declares retail price for each of the imported items in terms of Section 2(27) of the Sales Tax Act, 1990, and that the goods are assessed for sales tax on such declared retail price.

    FBR said that the retail price, if not printed at import stage, can be printed at the port of import in the prescribed manner.

    If that is also not possible, the importer shall undertake to print the retail price after clearance of goods and shall pay sales tax on retail rice which shall not be less than 130 percent of the customs value increased by assessed customs duties, excise duty and other applicable taxes and charges excluding sales tax.

    The FBR said that if the phrase ‘in retail packing’ appears against any item/entry in the Third Schedule, the retail price taxation thereon shall not apply if such items are not in retail packing at the time of import.

    All other items shall be charged to sales tax on the basis of retail price even if not in retail packing.

    Under existing law, the goods being raw materials or intermediary goods, with customs duty rate below 16 percent are excluded from purview of value addition tax under the Twelfth Schedule.

    Such items, if imported by a commercial importer, are in such form that the same can be sold to the customer without further manufacturing process, such as tea, spices etc. the same shall be subject to value addition tax.

    Related Post

    FBR allows goods clearance without retail price print till July 31

  • 2019/2020: FBR explains withholding tax on profit on debt

    2019/2020: FBR explains withholding tax on profit on debt

    ISLAMABAD: Federal Board of Revenue (FBR) has explained levy of withholding tax on profit on debt for tax year 2019/2020 applicable from July 01, 2019.

    The FBR said that every person, other than a company, receiving profit on debt from persons mentioned in clause (a) to (d) of sub-section (1) of Section 151 are separately taxed at the rates provided in Division IIIA of Part I of the First Schedule.

    The section 151 explains:

    151. Profit on debt. — (1) Where –

    (a) a person pays yield on an account, deposit or a certificate under the National Savings Scheme or Post Office Savings Account;

    (b) a banking company or financial institution pays any profit on a debt, being an account or deposit maintained with the company or institution;

    (c) the Federal Government, a Provincial Government or a Local Government pays to any person profit on any security other than that referred to in clause (a) issued by such Government or authority; or

    (d) a banking company, a financial institution, a company referred to in sub-clauses (i) and (ii) of clause (b) of sub-section (2) of section 80, or a finance society pays any profit on any bond, certificate, debenture, security or instrument of any kind (other than a loan agreement between a borrower and a banking company or a development finance institution) to any person other than financial institution.

    The FBR said that prior to the Finance Act, 2019, the rates were 10 percent where profit on debt was up to Rs5 million, 15 percent where profit on debt was more than Rs5 million but not more than Rs25 million and 15 percent where profit of debt exceeding Rs25 million.

    Through Finance Act, 2019, the rates of imposition of tax under Section 7B mentioned in Division IIIA, Part I of the First Schedule have been enhanced as:

    01. Where profit on debt does not exceed Rs5 million, the tax rate shall be 15 percent;

    02. Where profit on debt exceeds Rs5 million but does not exceed Rs25 million, the tax rate shall be 17.5 percent; and

    03. Where profit on debt exceeds Rs25 million but does not exceed Rs36 million, the tax rate shall be 20 percent.

    The FBR said that where the profit on debt exceeds Rs36 million in a tax year, section 7B will not be applicable and the profit on debt will not be separately taxed for persons other than companies.

    In such cases, profit on debt will be chargeable to tax under the head ‘income from other sources’ under section 39 and tax shall be imposed at the rates specified in paragraph (1) or (2), as the case may be, of Division I, Part I of the First Schedule.

  • Hafeez Shaikh briefs US treasury officials on FATF action plan implementation

    Hafeez Shaikh briefs US treasury officials on FATF action plan implementation

    ISLAMABAD: A US delegation led by Ambassador Alice G. Wells, Acting Assistant Secretary of State for the Bureau of South and Central Asian Affairs, along with the US Treasury officials comprising Scott Rembrandt, Deputy Assistant Secretary, Grant Vickers, David Galbraith and others held a meeting with Abdul Hafeez Shaikh, Adviser to the Prime Minister on Finance & Revenue today at Finance Division, Islamabad.

    A statement on Tuesday said that the adviser briefed the visiting delegation on measures pertaining to economic reforms being undertaken by the government of Pakistan to ensure economic discipline, efforts being made towards implementation of FATF Action Plan and the key challenges being faced.

    He emphasized the importance of bilateral engagement with the US and the need to encourage entrepreneurs from private sector of both the countries which will lead to enhanced trade.

    The Adviser informed that over the past three months, the Government has taken significant steps to bring financial discipline that include reduction in Current Account deficit, focus on increasing revenue generation, measures to reduce fiscal expenditures, reduce fiscal borrowings, efforts to enhance foreign exchange reserves through bilateral and multilateral support, arrangement of petroleum credit facility with KSA and IDB and IMF Program.

    Further, as part of its institutional development initiative, SBP and FBR are being resourced and empowered. At the same time to support economic growth and facilitate the people below the poverty line, various Programs to support our export oriented industries and health insurance schemes have been introduced for the poor.

    Regarding, implementation of FATF Action Plan, the Adviser briefed that the government is putting in all-out efforts to complete the Action Plan, involving all relevant authorities at the federal and provincial levels, supported by capacity building through international partners.

    The Adviser expressed Government of Pakistan’s commitment to enhance the effectiveness of its AML/CFT Framework being undertaken by the government of Pakistan, with the objective to ensure that all the actions that are being taken to curb Terror Financing are irreversible and sustainable.

    The Adviser urged for continued support of the international community for strengthening of the AML/CFT Framework over a longer period of time. Ms. Alice G. Wells appreciated the briefings and expressed that the US would continue to remain engaged with Pakistan in its economic reforms efforts and help build an environment that facilitates business development between the two countries.

  • FBR estimates Rs20 billion annual revenue loss in illicit tobacco trade

    FBR estimates Rs20 billion annual revenue loss in illicit tobacco trade

    ISLAMABAD: Federal Board of Revenue (FBR) has estimated around Rs20 billion as revenue loss due to illicit trade of tobacco products.

    The FBR on Tuesday said that the tobacco sector in Pakistan contributed significant revenue in 2018-2019 amounting to Rs 117 Billion (Rs 90.854 billion FED and Rs. 26.147 Billion sales tax).

    However, Pakistan is also facing problem with the illicit trade in tobacco products, which includes undeclared local production, smuggling of tobacco products of foreign brands and counterfeit production. “The illicit trade in tobacco products costs Pakistan more than Rs. 20 billion a year,” the FBR said.

    In order to prevent leakage of revenue, under-reporting of production and sales of tobacco products and to ensure proper payment of FED and Sales Tax on the manufacture and sale of tobacco products, the FBR is mandated to licence the implementation of a track and trace system; which is to be developed, operated and maintained by the licensee for tobacco products manufactured in and imported into Pakistan.

    To this end, the FBR is inviting applications for grant of licence to be issued under the Sales Tax Rules of 2006 for the development, maintenance and operation of track and trace system in accordance with the provisions of the rules and the instructions specified herein below.

    The successful applicant in compliance with SRO 250(I)/2019 dated 26.02.2019 shall implement a track and trace system, including high security tax Stamps/Markers/Codes which includes unique, secure and non-removable identification markings (hereafter referred to as unique identification markings) combined with state-of-the-art electronic monitoring and tracking systems, for the purpose of protecting existing revenue and to facilitate the generation of further revenue streams through the effective reduction of the illicit trade of tobacco products in Pakistan.

    The FBR said that Pakistan ratified the Framework Convention on Tobacco Control (FCTC) on 3rd November 2004 and acceded to the FCTC Protocol to Eliminate Illicit Trade in Tobacco Products on 29th June 2018. Article 8.2of the FCTC Protocol requires Pakistan to establish a tracking and tracing system, to be controlled by Pakistan, for all tobacco products that are manufactured in, imported into or transiting through its territory.

    Pakistan has to embark on a project to implement a track and trace system for tobacco products to meet its national need to monitor and protect its revenues and address the high level of illicit trade within its borders, and to meet its international obligations under FCTC to implement a track and trace system that can form part of a regional and/or global international track and trace regime for tobacco products.