The Senate Subcommittee on Interior has transferred the Rs. 1.12 trillion cigarette tax theft case to the Federal Investigation Agency (FIA).
The decision was taken during a meeting on Monday. Chairman Federal Board of Revenue (FBR) Rashid Langrial did not attend the meeting.
The committee expressed dissatisfaction with the FBR’s handling of the alleged tax theft case. Members questioned whether the tax authority could resolve the matter effectively.
The committee chairman decided that the FIA should investigate the case. The agency has been given two months to complete its investigation.
The FIA must also submit a detailed report to the Senate committee after completing its probe. The investigation will cover several aspects of the alleged tax theft.
The committee has also ordered a detailed review of cigarette brands and manufacturers operating in the country. Authorities were directed to examine their activities and tax compliance.
Lawmakers also focused on factories importing raw materials under quota-based schemes. The committee directed authorities to take action against factories found violating relevant rules.
The role of customs officials also came under scrutiny during the meeting. Senators raised questions about how cigarettes and raw materials moved through special arrangements.
The matter was discussed after the committee reviewed a previous cigarette smuggling case. The Customs Department had seized a consignment of smuggled cigarettes.
A Member Customs told the committee that all trucks linked to the consignment had been seized. The Motorway Police had also been informed before the operation.
Officials said the police were alerted after receiving intelligence about the suspected smuggling activity. The information helped authorities intercept the vehicles carrying the cigarette consignment.
Senator Talha Mahmood questioned whether the case properly fell under the Customs Department’s jurisdiction. A customs official said the cigarettes may have entered Pakistan from Afghanistan.
The committee has now expanded the scope of the investigation. The FIA will examine the alleged tax theft and related smuggling activities.
The investigation will also look into cigarette companies and their manufacturing operations. Officials involved in any wrongdoing may also face action.
The committee further ordered authorities to examine quota-based imports of cigarette raw materials. The movement of these materials will also be reviewed.
The development comes amid growing concerns over cigarette smuggling and alleged tax losses. The investigation is expected to determine how the alleged tax theft occurred.
In other related news also read Senate Committee Questions FBR Over Tax Collection Performance
The FIA has two months to complete the inquiry and present its findings. The Senate committee will review the agency’s report after its submission.
