Sources told Business Recorder here on Tuesday that the FBR has taken the decision during a meeting between Customs officials and Inland Revenue officials to control influx of Indian goods and non-tax paid cigarettes manufactured in AJK. Following directions from Chairman FBR, Customs Department and IR had a joint meeting regarding smuggling from AJ&K at the Customs House Islamabad. The meeting was coordinated by Malik Tanvir, Central Coordinator for IREN and attended by Jawad Agha, Chief Collector North, Customs; officials of RTO Sialkot; RTO Rawalpindi, Collector of Customs MCC Sialkot and Collector of Customs Model Customs Collectorate (MCCC) Islamabad.
There would be coordination between check posts of Customs and Inland Revenue through Inland Revenue Enforcement Network (IREN). The customs would focus on areas having high risk to Indian goods and Inland Revenue would have the mandate to check non-duty paid cigarette manufactured by AJ&K illicit manufacturers. Both the sides developed consensus that, it becomes essentially vital for all the stakeholders in Pakistan and AJK to not only develop an understanding of the existing conditions involving illicit trade in cigarettes, but also take a consolidated and unanimous approach to play an effective role against this ever growing menace.
Sharing experience, the officials of the IR Enforcement Network informed that all the seized brands of AJ&K origin were being sold at a retail price which was ever lower than the amount of duty/taxes payable thereon. The idea was to make joint efforts and strategy against contraband goods coming from AJ&K. The Customs Check Posts would be setup near Muree, Kahuta and adjacent areas. The high-risk areas of Indian smuggled goods included Muzaffarabad and Neelam Valley areas where customs check posts would be established. The check posts of the Inland Revenue would be setup at Mirpur and other areas to check non-duty paid cigarettes from AJK.
FBR has exposed the nexus of AJ&K based cigarette manufacturer who were allegedly involved in the illegal trade of non-duty paid cigarettes to capture the market of cigarettes while offering the cheap price against the set price Performa by FBR and related institutions.
IR enforcement network has developed and executed strategy to combat illegal cigarette trade in Pakistan especially to address foreign non-duty paid / counterfeit brands, local manufactured non-duty paid cigarettes, dumping by AJK cigarette manufacturers, cigarette manufacturing in non-taxable territories, ie, FATA/PATA, tracking alternate/mobile cigarette manufacturing facilities, monitoring of Dormant cigarette manufacturing units, pooling of IR resources (human and physical) for joint enforcement initiatives.
According to the sources, AJK based cigarette manufacturers are willfully involved in illicit cigarette trade in Pakistan by dumping low priced/non-duty paid cigarette. Lahore based distributor is acting as conduit in the aforesaid scheme of tax fraud, adding that this company act as a shield for AJ&K based cigarette manufacturers and cartel involved in the trade of non-duty paid cigarettes whenever any AJK based cigarette is seized/detained.