Sale, purchase of smuggled cigarettes suspended: DG II&IR drive against Khyber Pakhtunkhwa stockists

In an extraordinary development in Khyber Pakhtunkhwa on Tuesday, shopkeepers and retailers of non-duty paid or smuggled cigarettes almost stopped their buying/selling in Peshawar and started returning their stocks to their suppliers.
Sources told Business Recorder here on Tuesday that the dedicated Unit of the Directorate General of Intelligence and Investigation Inland Revenue (IR) Federal Board of Revenue has launched an aggressive drive against the stockists and wholesalers of non-duty paid or smuggled cigarettes in KP.
The intelligence officials have also started intercepting vehicles carrying non-duty paid tobacco and smuggled cigarettes from Swabi to other parts of the country. In a major case on Tuesday, the intelligence officers of the directorate intercepted two vehicles carrying 10,000 kg of un-manufactured tobacco without payment of federal excise duty.
As a result of the effective enforcement drive, the buying and selling of the smuggled cigarettes has come to standstill whereas fear of raids has forced the retailers to return the non-duty paid/smuggled stocks to their suppliers. The supply chain of non-duty paid cigarettes has broken in Peshawar. The retailers have started returning stocks of cigarettes to their suppliers as they were afraid of raids, seizure of smuggled goods, imprisonment and payment of federal excise duty with penalty.
After awareness campaign which concluded last month, the staff of the dedicated Intelligence Unit of IR is visiting markets in different parts of the KPK and checking the retail outlets to stop selling of non-duty paid smuggled cigarettes. Resultantly, retailers are not selling these items, which further increased the prices of the smuggled cigarettes.
The price of one of the brands of smuggled cigarettes has increased from Rs 120 per packet to Rs 140 per packet. Similar trend was observed as far as import of other brands of smuggled cigarettes is concerned. More risk has been involved in selling of smuggled cigarettes under current circumstances. The non-availability of the smuggled cigarettes in Peshawar has further increased its prices in the local markets.
The ongoing enforcement drive of the Intelligence Unit of IR Peshawar has almost made it impossible for the retailers to sell the smuggled items. The increasing fear of being caught has forced the retailers to return the remaining stocks to their suppliers in the KPK. Due to increasing pressure, the cost of selling of such item has also increased in Peshawar.
Details of the case revealed that the officials of the dedicated Unit of the Directorate General of Intelligence and Investigation Inland Revenue (IR) were deputed to carry out checking of vehicles transporting non-duty paid tobacco/cigarettes from Swabi to other parts of the country. During the checking of vehicles, the directorate's staff intercepted two trucks which were carrying 10,000 kgs of un-manufactured tobacco without valid FED invoice.
The vehicles were brought to Peshawar and owners of the tobacco also came to the office. They also submitted invoices of purchase from the concerned tobacco company. The owner was however asked to deposit the FED at the rate of Rs 10 per kg as required under the federal excise law. After deposit of Rs 100,000 FED, both the two trucks along with un-manufactured tobacco were released by the directorate.