The Senate Standing Committee on Interior and Narcotics Control has ordered further investigations into revenue losses in Pakistan’s tobacco sector.
The committee estimated that tax evasion, illicit manufacturing and trade irregularities could cause around $1 billion in annual losses.
Members also questioned the handling of a case involving the theft of 2,828 cartons of seized cigarettes.
Committee Questions Cigarette Theft Case
The committee expressed dissatisfaction with the nomination of lower-rank officials in the FIR.
Members said officers responsible for the matter should face accountability. They also questioned why field personnel faced legal action while factory owners allegedly avoided scrutiny.
The committee reviewed a subcommittee report presented by Convener Senator Saifullah Abro.
The report covered tax-exempt areas, including FATA, PATA and Khyber Pakhtunkhwa. It also examined alleged tax evasion and illicit activity within the tobacco sector.
FBR Warehouse Procedures Under Scrutiny
Meanwhile, members raised concerns about the handling of confiscated cigarettes.
The committee found gaps in FBR warehouse procedures. These included missing CCTV footage, unavailable inventory records and unverified handovers of seized goods.
It therefore ordered the presentation of verified physical stock registers for confiscated warehouse goods.
Senator Talha Mahmood also highlighted problems with the initial registration of cases. He said preliminary inquiries identified key individuals who were later excluded from the final charges.
FIA and FBR Directed to Submit Reports
The committee directed the Federal Board of Revenue (FBR) and Federal Investigation Agency (FIA) to submit comprehensive inquiry reports within one month.
It also questioned the legal basis for FIA conducting independent tax inquiries involving FBR matters.
As a result, the committee directed both institutions to establish a coordinated operational mechanism.
Members further called for future enforcement actions to focus on alleged main beneficiaries and factory owners rather than lower-level field personnel.
Anti-Smuggling Powers Also Reviewed
The committee also reviewed notifications granting anti-smuggling powers to the Frontier Corps and Pakistan Rangers.
These powers apply to border areas of FATA and PATA. Officials said the measures were introduced because of complex local law and order conditions.
Finally, the committee agreed to form another subcommittee to examine tax evasion and related revenue losses.
It also directed the FIA to provide an update on the cigarette theft investigation.
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