Senate Committee Demands 20 Years of Tobacco Tax Records from FBR

ISLAMABAD: A sub-committee of the Senate Standing Committee on Interior and Narcotics has directed the Federal Board of Revenue (FBR) to submit complete records of tobacco tax assessments, collections, outstanding dues, and registered tobacco factories spanning the last 20 years after expressing dissatisfaction over the tax authority’s failure to provide the requested information.

The committee took serious notice of the FBR’s inability to present a comprehensive briefing on tax collection from the tobacco industry despite repeated directives issued during previous meetings.

Senate Questions FBR Over Tobacco Tax Collection

During the meeting, officials informed the committee that Pakistan Tobacco Company and Philip Morris Pakistan remain among the country’s largest tax-paying tobacco manufacturers. However, members said the information presented was incomplete and failed to address key concerns regarding tax recovery and evasion.

The committee ordered the FBR to provide:

  • Complete details of taxes assessed, collected, and still outstanding from the tobacco sector.
  • A list of all registered tobacco factories over the past 20 years.
  • Documentary evidence supporting outstanding tax claims.
  • A complete list of tobacco companies and their brands.
  • Details of imported raw materials.
  • Revenue and tax collection data for the last two decades.

FBR Official Asked to Leave Meeting

The committee expressed strong dissatisfaction after Javed Iqbal Tarar, Chief Sales Tax at the FBR, failed to provide previously requested data on alleged tax evasion in the tobacco sector. Following his inability to furnish the information, he was asked to leave the meeting.

Senator Talha Mahmood emphasized that the committee’s proceedings must remain impartial and based strictly on documentary evidence.

Media Campaigns Against Illegal Cigarettes Reviewed

The Press Information Department (PID) briefed the committee on nationwide awareness campaigns conducted for various ministries and divisions. Officials stated that campaigns were broadcast through 92 television channels and other media platforms, with expenses borne by the sponsoring ministries.

The committee noted that anti-illegal cigarette awareness campaigns had been conducted on behalf of the FBR and directed the PID to submit complete details of:

  • Media contracts.
  • Campaign expenditures.
  • Agreements signed with television channels.

Rangers Deployed to Support FBR

Committee members were informed that Rangers personnel had been deployed to assist the FBR in curbing tax evasion in the tobacco sector.

Referring to earlier briefings, Senator Abro said Pakistan Customs had previously reported tobacco-related taxes of Rs. 75 billion, while subsequent discussions suggested that nearly Rs. 40 billion remained outstanding. The committee directed the FBR to provide documentary proof regarding these figures.

FIA Ordered to Probe Alleged Corruption

The committee also directed the Federal Investigation Agency (FIA) to investigate an alleged corruption case involving Badshah Wazir, focusing on claims that raw materials imported for tax-exempt areas never reached their intended destinations.

Committee Reviews Narcotics Enforcement

Apart from tobacco taxation, the committee reviewed narcotics enforcement efforts across Pakistan.

Officials informed members that the Anti-Narcotics Force (ANF) accounted for nearly 49% of the country’s total narcotics seizures during the previous year. Authorities also highlighted a growing shift in drug abuse from traditional plant-based narcotics toward synthetic and chemical drugs.

The committee discussed whether confiscated narcotics could be used for pharmaceutical or scientific research purposes, subject to legal approval, instead of being destroyed.

Karachi Police Brief Drug Trafficking Operations

The DIG South Karachi informed the committee that between 2013 and 2026, law enforcement agencies had:

  • Registered more than 105,000 narcotics cases.
  • Arrested approximately 127,000 suspects.

The committee also reviewed the high-profile drug trafficking case involving Anmol alias Pinky. Members expressed concern over conflicting reports regarding her arrest and questioned why she had received extensive police escort during court appearances.

Officials informed the committee that 28 criminal cases had been registered against Anmol, while 35 delivery riders linked to her alleged narcotics network had been arrested. Authorities also claimed that certain Nigerian nationals residing in Lahore’s Nishtar Colony were connected to the network.

Customs Data on Trade Also Sought

Senator Talha Mahmood sought detailed information from Pakistan Customs regarding imports and exports through Pakistan’s borders. He raised concerns over alleged under-invoicing of mining raw materials and requested comprehensive trade data relating to the Sust border and Pakistan’s import-export activities with Iran.

The committee concluded by summoning the inspectors general of police from Sindh, Punjab, and Balochistan to attend the next meeting. All relevant departments were directed to submit the requested records and documentary evidence before the committee’s next session.

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