Smuggled and non-duty paid cigarettes: 'FBR's agency taking major enforcement actions'

04 Oct, 2016

Khawaja Tanveer Ahmad Director General Intelligence and Investigation Inland Revenue (IR) Federal Board of Revenue (FBR) Monday showed commitment before Senate Sub Committee on National Health Services (NHS) that the FBR's intelligence agency is taking major enforcement actions against smuggled and non-duty paid cigarettes on national level for which co-ordination of provincial authorities is also needed.
He informed the committee that the Director General Intelligence and Investigation IR has taken many actions against the illicit trade of tobacco. However, this is only possible with necessary infrastructure, equipment and logistic support and effective co-ordination with the provincial departments. The support of the provincial authorities and logistic support like vehicles etc is necessary for taking against the illicit trade on national level. Despite, limited workforce and infrastructure, the agency has conducted a number of operations against non-duty paid cigarettes during recent past.
Khawaja Tanveer Ahmad added that the agency's intelligence network is well aware about the places where such non-duty paid smuggled cigarettes are stored, but full-fledged enforcement actions in sensitive areas needs political support, backing of police and necessary infrastructure, equipment and logistic support for effective enforcement against the smugglers of non-duty paid cigarettes. Director General Intelligence and Investigation Inland Revenue (IR) said that the concerns of the documented industry are legitimate that the illicit trade of cigarettes is causing revenue loss to the national exchequer.
Khawaja Tanveer Ahmad also briefed the committee in detail about the successful operations of the agency against the smuggled and non-duty paid cigarettes. Meanwhile, Ministry of National Health Services (NHS) briefed the Senate Sub Committee on National Health Services (NHS) that the tobacco industry and anti tobacco organisations have totally opposite point of views on the bill being discussed in the committee.
The tobacco industry believed that there was no need to do new legislation regarding tobacco as the existing laws were comprehensive. However the Non Government Organisations (NGOs) claim that it was mandatory to do legislation. It is pertinent to mention that bill titled "The Prohibition of Smoking and Protection of Non-Smokers Health (Amendment) Bill, 2016" tabled by Senator Mushahid Hussain Syed observed that the tobacco advertisement should be completely banned and even tobacco retailers should not be allowed to advertise the tobacco products inside the shops because youth is attracted by advertisements. Moreover bill suggests that tobacco companies should not be allowed to sponsor corporate social responsibility (CSR) such as health camps, plantation campaigns, sports events, etc.
During previous meeting, held on 22nd September, the Sub Committee directed the ministry to hold a consultation with the stakeholders and brief the committee that on which points they have consensus. Additional Secretary NHS Dr Muhammad Hashim on Monday while briefing the committee, chaired by Senator Nauman Wazir, informed that the tobacco industry and the non government organisations have totally opposite point of views. He said that the tobacco industry claims that there was no need to make new laws as comprehensive laws already exist.
"The industry claims that there was need to implement the existing law in letter and sprit instead of making new laws. On the other hand NGOs believe that it was the obligation of Pakistan to further strengthen the law against tobacco," Dr Hashim said. He said that the only points on which tobacco industry and opponents reached to a consensus were to remove the words 'Pubs and Dance Clubs' from the bill. It is pertinent to mention that the bill suggest that there should be complete ban on smoking and advertisements in the pubs and dance clubs. However the committee members had also said that the suggestion was irrelevant for Pakistan as they do not legally exist.
A representative of the tobacco industry said that tobacco is the most regulated industry and the ban on advertisement was completely observed. "There is need to enforce the existing law. Moreover the smuggling of the tobacco products should also be checked because government is facing severe financial loss due to smuggling," he said. Head of the NGO The Network for Consumer Protection Nadeem Iqbal, who assisted in drafting the bill, said that under the World Health Organisation Framework Convention on Tobacco Control (FCTC) it was obligation of the government to enhance restrictions on the tobacco industry. There is no law in the country which would be violated in case of restricting the CSR activities. On the other hand FCTC clearly says that CSR activities can not be done by tobacco industry, he added.

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