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Directorate General of Intelligence and Investigation Inland Revenue (IR) has decided to approach South Korean government through Korean tax agency on massive entry of their Pine brand cigarettes into Pakistan without payment of duties/taxes. Official sources told Business Recorder here on Wednesday that the directorate of intelligence IR through FBR's International Taxes Wing would apprise Korean tax agency about large-scale presence of non-duty paid Pine cigarettes in the country.
The issue would be taken up at the international level to check illegal selling of non-duty paid Pine cigarettes in huge quantity in the country. Reportedly, the inflow of non-duty paid smuggled cigarettes from neighbouring war-torn Afghanistan has been witnessed, which is alarming for FBR and local cigarette manufactures. Earlier, the issue was taken up by Ministry of Commerce with their counterpart in Korea, but no tangible results were visible on the said issue. Official said that a detailed study on illicit trade of non-duty paid Pine cigarettes has been finalised by the agency, exposing the whole network involved in entry of non-duty paid cigarettes. The study has complete profiles and other details of persons involved in illegal trade of Pine cigarettes.
A new awareness campaign has been launched by the directorate of intelligence IR to inform dealers, wholesalers and other businessmen about the illegal business of Pine cigarettes in the county. The awareness campaign would also highlight consequences and legal implications of illegal selling of Pine cigarettes without payment of duties/taxes. The selling of non-duty paid Pine cigarettes may result in five years imprisonment, fine up to Rs 50,000 or equal to the amount of unpaid Federal Excise Duty (FED).
The directorate of intelligence IR has also constituted special teams to distribute awareness material and pamphlets in posh markets, at prominent retailer outlets, leading shops, medium size business establishments, retail outlets and wholesalers and distributors engaged in business of non-duty paid cigarettes. The agency wanted to give a clear message that the said cigarettes are being imported illegally without payment of duties/taxes. Selling of non-duty paid cigarettes would have serious consequences for those involved in such illicit trade.

Copyright Business Recorder, 2013

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