PHC Orders FBR to Unseal 26 Factories

Peshawar, August 31, 2025, 05:11 PM PKT — The Peshawar High Court (PHC) has delivered a decisive blow, ordering the Federal Board of Revenue (FBR) to de-seal 26 cigarette factories across Khyber Pakhtunkhwa, shut down for failing to install CCTV cameras per an August 18 directive, as reported by Dawn news. A bench of Justice Wiqar Ahmad and Justice Mohammad Ijaz Khan issued notices to the FBR chairman, chief commissioner, and regional tax commissioner, demanding replies within two weeks on petitions from Universal Tobacco Company and three other manufacturers, with the next hearing set for September 11.

The interim order mandates, “The factories sealed due to non-compliance with the August 18 letter shall be de-sealed, and no further action shall be taken,” addressing claims of a “discriminatory” directive. Counsel Isaac Ali Qazi argued that multinational firms faced no such mandate, leaving local manufacturers jobless after 26 factory closures, despite prior compliance with the 2019 tracking and tracing system (TTS) under Chapter XIV-B of the Sales Tax Rules, 2006, linked to FBR’s operator since November 2, 2023, and monitored by field staff. The petitioners seek to nullify the directive, deeming enforcement illegal under Sections 40-B and 40-C of the Sales Tax Act. Web context on tax enforcement shows past disputes, while posts found on X reflect relief mixed with scrutiny—some cheer justice, others question consistency. Critically, the narrative of “regulatory fairness” may mask enforcement bias—web data hints at uneven policies, and X sentiment suggests distrust in equitable application, pointing to potential challenges.