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Directorate General Intelligence and Investigation, Inland Revenue, (I&I-IR) Federal Board of Revenue (FBR) has conducted raids on petro-marts or retail outlets of the oil marketing companies (OMCs) and recovered smuggled/non-duty paid cigarettes from such outlets.
Sources told Business Recorder here on Monday that the special raiding parties of the directorate have visited the petro-marts or retail outlets of the twin cities of Islamabad-Rawalpindi. The agency has successfully conducted raids at different outlets etc located at prominent areas of federal capital and adjacent city. The special teams have recovered a number of brands of non-duty paid or smuggled cigarettes including Dunhill, Marlboro white/green/red, Benson and Hedges, Camel an American brand, Pine menthol/light, Dunhill international, Hi-Lite and Dawdoff classic of Germany.
The smuggled cigarettes were recovered from petro-mart/retail outlet located at Alwahid PSO Kashmir Highway. A very small quantity of smuggled cigarettes was recovered from petro-marts/retail outlets of the said OMC located at Setara Market G-7 and G-8 Markaz. A Petro-Mart/retail outlet located at the Swan Garden-Islamabad Highway resisted and did not allow agency's officers to recover/seize smuggled cigarettes. They promised to remove the cigarettes by themselves. The directorate of intelligence IR has decided to take up the matter with the PSO.
The directorate has also recovered smuggled cigarettes from petro-mart/retail outlet of Shell located at Westrage near Beacon House School Peshawar Road Campus. Earlier, Directorate General Intelligence and Investigation, IR had informed the OMCs to immediately remove smuggled cigarettes from petro-marts or retail outlets. In this connection, the directorate of intelligence IR had written letters to the OMCs for immediate action against sale of smuggled cigarettes. During survey of the directorate, it was found that a number of Petro-Marts operating at OMCs petrol pumps are selling illegal smuggled cigarettes. This is in clear violation of Federal Excise Act 2005, Federal Excise Rules 2005 and Sales Tax Act 1990.
It was brought to notice that sale of smuggled/local NDP cigarette not only erodes state's writ but it also causes an annual loss of around Rs 10 billion to the national exchequer in the shape of non-payment of duties and taxes. The resultant situation adversely affects the tax compliant local cigarette industry as well, directorate said.
In addition to tax evasion, these smuggled cigarette packs are sold without pictorial health warnings. These cigarettes packs thus also violate Pakistan's law mandating printing of 40 percent pictorial health warning on all cigarette packs which are sold in Pakistan. In the light of foregoing, the directorate had requested the OMCs to discharge your corporate social responsibility by removing smuggled/NDP cigarettes from the petro-marts operating at company operated petrol pumps.
Meanwhile, the directorate of intelligence IR Islamabad has seized 6.150 million sticks of smuggled/non-duty paid cigarettes during July-March 2013. Other regional directorates of intelligence IR have seized 1.2 million sticks during the period under review. A total of 7.35 million sticks of the smuggled/non-duty paid cigarettes were seized during July-March 2013. The data revealed that the directorate of intelligence IR has shown remarkable performance in checking smuggling of non-duty paid cigarettes across the country.

Copyright Business Recorder, 2013

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