While curbing the illicit trade of non-duty paid cigarettes, the subsidiary body of Federal Board of Revenue (FBR), Inland Revenue Enforcement Network (IR-EN) has exposed the supply line of non-duty paid cigarettes as seizing three loaded trucks manufactured in Azad Jamu and Kashmir and were routed to provincial capital of Punjab.
Sources in FBR has revealed that IR Enforcement Network seized three loaded trucks having 84 lac non-duty paid cigarettes of worth rupees approx. 30 million routed from AJ&K to Lahore.
FBR has exposed the nexus of AJ&K based cigarette manufacturer Walton Tobacco and M/S Numeric Distribution Network (Pvt) Ltd who were involved in the illegal trade of non-duty paid cigarettes to capture the market of cigarettes while offering the cheap price against the set price Performa by FBR and related institutions.
According to the official sources AJK based cigarette manufacturers are willfully involved in illicit cigarette trade in Pakistan by dumping low priced/non-duty paid cigarette. Lahore based M/S Numeric Distribution Network (Pvt) LTD Lahore is acting as conduit in the aforesaid scheme of tax fraud, adding that this company act as a shield for AJ&K based cigarette manufacturers and cartel involved in the trade of non-duty paid cigarettes whenever any AJK based cigarette is seized/detained.
It was also learnt that this company while garbing of few original sales invoices, they try to justify all illicit sale of AJK based cigarette in Pakistan. “Detention and seizure of 03 truckloads (840 Carton) carrying fake invoices has exposed the whole scheme of duty tax/fraud which is going on since last so many years”, official sources revealed.
In Pakistan, like rest of the world, the tobacco industry is highly prone to tax evasion. According to a recent study conducted by a credible research think tank, FBR is losing revenue over Rs. 45 billion per annum and moreover this chunk of prevailing non tax paid segment is expanding day by day. In order to forestall this menace FBR has constituted a special task force “Inland Revenue Enforcement Network” (IR-EN) against illicit trade of cigarette/tobacco. This network has launched a massive campaign against all segments of non-tax paid cigarettes/tobacco in Pakistan.
During the aforesaid exercise it has been observed that huge quantity of low priced cigarette is being supplied & sold in Pakistan by AJK based Cigarette manufacturers.
IR-En faced with the aforementioned inaction decided to combat the dumping menace on its own since 21st April, 2017 03 truckloads of AJK based low priced/illicit cigarette (manufactured by M/S Walton tobacco Mirpur, AJK) seized by cigarette squad ,RTO Rawalpindi. Post interception probe revealed, the ground check reports proved that in all the three cases, the invoiced buyers had fake particulars as declared business premises had no existence on the ground or if any was being used for some other purposes.