ISLAMABAD – June 6: A Senate sub-committee has voiced serious concerns over the Federal Board of Revenue’s (FBR) inefficiency in enforcing the Track and Trace system within Pakistan’s tobacco sector.
During a session chaired by Senator Sarmad Ali, the Senate Standing Committee on Commerce highlighted the growing tax evasion, smuggling, and counterfeit goods issues — particularly in the tobacco industry. Officials from the Ministry of Commerce and Policy Research Institute of Market Economy (PRIME) briefed the panel on ongoing challenges.
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PRIME Executive Director Dr. Ali Salman revealed that illegal trade in tobacco, pharmaceuticals, and other goods is rampant in tax-free zones like Khyber Pakhtunkhwa and Azad Jammu Kashmir. He pointed out that small manufacturers in these areas evade taxes, contributing to the black market.
Senator Zeeshan Khanzada urged for an in-depth policy discussion involving multinational tobacco companies, local manufacturers, the Pakistan Tobacco Board, the Ministry of Health, and consumer rights groups. He emphasized a collaborative approach to eliminate tobacco smuggling and protect tax revenues.
The committee also recommended revisiting excise tax policies, enforcing stronger border control measures, creating provincial laws to oversee retail tobacco sales, and establishing retail checkpoints to curb the availability of smuggled cigarette brands.
