FINDING/RECOMMENDATIONS:

MUSHTAQ AHMAD SUKHERA, FEDERAL TAX OMBUDSMAN:---This is an own motion investigation of systemic maladministration through exercise of jurisdiction under Section 9(1) of the Federal Tax Ombudsman Ordinance, 2000 (FTO Ordinance). The investigation is based on general Complaints that the Revenue Division/FBR and its field formations aFe not realizing full potential of "Federal Excise Duty" and "Sales Tax" from majority of cigarette manufacturers, operating in the country either by failing to conduct proper audit of these units or ensuring accountal of production of these units in their official record by using monitoring provisions of Sections 45 and 45A of the Federal Excise Act, 2005 read with Sections 40B and 40C of the Sales Tax Act, 1990.2. The FBR vide its letter C.Nos. 1(2)/STM/2017/3S287-R dated 19.03.2018 and 28.05.2019 furnished following information:-A CIGARETTE MANUFACTURERS OPERATING IN THE COUNTRY:(i) Sales Tax is being charged at the standard rate of 17% on import and local...