NWFP cigarette makers: Tarin tells FBR cell to extend probe into tax evasion

Finance Minister Shaukat Tarin has directed the Anti-Evasion Cell of the Federal Board of Revenue to extend its scope of investigation for checking tax evasion by the cigarette manufactures in the NWFP. Sources told Business Recorder here on Thursday that the issue came to light during the last meeting of the Tax Advisory Council which reviewed the progress of the FBR Anti-Evasion Cell and its branches in the reformed units.
During the meeting, the Finance Minister pointed out that Peshawar was missing from the list of localities where tax evasion by cigarette manufactures needs to be checked.
The FBR has informed the Finance Minister that the Anti-Evasion Cells have been established at the following reformed units to effectively monitor the tax collection and check evasion by different sectors: Large Taxpayer Unit (LTU) Islamabad, Regional Tax Office (RTO) Karachi, RTO Abbottabad, RTO, Hyderabad, RTO, Faisalabad, RTO Quetta and RTO Multan.
The Cells have started functioning to analyse data on scientific basis to unearth evasion in different sectors. The FBR has issued instructions to the remaining LTUs/RTOs for setting up of the Anti-Evasion Cells. Sources said that the FBR has also informed the Tax Advisory Council that the FBR 'Anti-Evasion Cell' is actively analysing tax records of five sectors including cement, sugar, beverages, cigarettes and lubricants for detailed scrutiny of data to check any kind of evasion of duties and taxes.
According to sources, the 'Anti-Evasion Cell' would primarily focus on analysis of past payment history of the units covered under the said five sectors. The sector specialities and experts would also check the aspect of smuggling in these sectors. The database of sales tax and customs departments would be thoroughly analysed to check trends in cement, sugar, beverages, cigarettes and lubricants like grease/oil.
The newly established cell has been given the mandate to keep a close eye on the high-risk sectors. Secondly, it would also help the FBR to improve indirect taxes collection through detection of big evasion cases. It would constantly monitor the data of registered units having abnormal tax profiles. It would collect information about the sectors earning huge profits but paying less in the form of duties and taxes. The Wing would thoroughly use analysis being compiled through research and statistics available with the FBR.