Senate Panel Seeks 20-Year Tobacco Tax Records

The Sub-Committee of the Senate Standing Committee on Interior and Narcotics has directed the Federal Board of Revenue (FBR) to furnish a comprehensive 20-year record relating to tobacco tax collection, registered manufacturing units, and outstanding tax liabilities after the tax authority failed to provide the information previously requested by the committee.

According to media reports, the meeting was chaired by Senator Saifullah Abro and attended by Senators Mohammad Talha Mahmood, Dilawar Khan, and Hidayatullah Khan.

During the proceedings, the committee expressed dissatisfaction with the FBR’s failure to produce the required data. Javed Iqbal Tarar, Chief Sales Tax at the FBR, was asked to leave the meeting after he was unable to submit the requested information, with committee members observing that the absence of the relevant records had hindered the committee’s deliberations.

The panel voiced serious concerns over the lack of comprehensive data regarding tax collection from tobacco manufacturers and questioned the effectiveness of monitoring and enforcement within the sector.

Committee members noted that Pakistan Customs had previously reported tobacco-related tax liabilities of approximately Rs75 billion, whereas subsequent discussions indicated that nearly Rs40 billion remained outstanding, prompting the committee to seek documentary clarification regarding the discrepancy.

The committee directed the FBR to submit documentary evidence of the outstanding tax amount, together with a complete list of all tobacco manufacturers and their registered brands, details of imported tobacco raw materials, and comprehensive revenue and tax collection data covering the past two decades.

In addition, the FBR has been instructed to provide records of all tobacco factories registered during the last 20 years to facilitate a broader review of the industry's regulatory and tax compliance history.

During the briefing, officials informed the committee that Pakistan Tobacco Company and Philip Morris Pakistan remain among the largest taxpayers operating within Pakistan’s tobacco industry.

The committee was also informed that the FBR has deployed Rangers to assist enforcement authorities in curbing tax evasion and improving compliance within the tobacco sector.

Separately, the Press Information Department (PID) briefed the committee regarding media awareness campaigns conducted on behalf of the FBR and other government ministries. Officials stated that these campaigns were broadcast through 92 television channels, with the associated costs being borne by the sponsoring ministries.

Following the briefing, the committee convener directed the PID to furnish complete details of all media contracts, campaign expenditures, and agreements executed with television channels. He further observed that the department was operating without a centralised record management system and stressed the need for improved administrative oversight and documentation.