Islamabad: A Senate sub-committee has directed the Federal Investigation Agency (FIA) to launch an investigation into the alleged misuse of Rs 1,120 billion in consumption certificates and potential tax evasion within the tobacco industry. This directive was issued during a session at the Parliament House chaired by Senator Saifullah Abro, with discussions focusing on the smuggling of cigarettes and irregularities in tax-exempt areas.

According to Senate of Pakistan, the sub-committee of the Senate Standing Committee on Interior examined the importation practices of major tobacco companies, revealing that Pakistan Tobacco Company and Philip Morris Pakistan import 95 percent of the raw materials used in cigarette manufacturing. The committee expressed concern over the non-submission of details regarding consumption certificates and urged the Federal Board of Revenue (FBR) to challenge the Peshawar High Court’s orders in the Federal Constitutional Court. The sub-committee emphasized the need for transparency and accountability, directing the submission of complete records and action against any irregularities.

The Federal Investigation Agency informed the committee that a team has been set up to investigate these concerns. The sub-committee’s discussions also highlighted the introduction of tracking chips by Pakistan Customs to monitor container movements, aimed at curbing smuggling and misuse of tax exemptions. Senator Talha Mahmood underscored the importance of robust monitoring mechanisms to address these issues.

The session also touched on industrial development disparities in Balochistan and discrepancies in apprehension reports related to theft incidents. The sub-committee directed relevant departments to ensure transparency and effective monitoring to prevent further misuse of tax exemptions and other irregular practices.