Islamabad: A Senate Sub-Committee meeting, convened by Senator Saifullah Abro, has raised questions over the Federal Board of Revenue’s estimation of tax evasion in the tobacco industry, highlighting a discrepancy with the government’s public claims. The meeting, held at the Parliament Lodges, also addressed issues of smuggling, misuse of raw materials in tax-exempt areas, and sought to enhance enforcement mechanisms.

According to Senate of Pakistan, the meeting revealed that the FBR estimated the tax evasion in the tobacco sector at approximately Rs. 40 billion, which is significantly lower than the government’s advertised claim of one billion dollars, or around Rs. 280 billion. The committee expressed concern over the absence of senior officials from relevant departments and stressed the importance of accurate public awareness campaigns. Senator Abro emphasized the need for senior officials to attend committee meetings, particularly when national revenue is under discussion.

The committee was briefed on the seizure of 16 tobacco factories for tax fraud and the regulatory framework governing the industry. It was noted that the FBR officials were not aware of the government’s ongoing campaign against tax evasion. Senator Abro directed the relevant authorities to address this discrepancy with the Prime Minister and correct the misleading advertisements.

Further, the committee examined the diversion of raw materials imported for tax-exempt regions and urged relevant authorities to provide detailed proposals and information at the next meeting. Concerns were also raised about the smuggling of Iranian petroleum products, with a call for strict action against those involved.

Additionally, the Federal Investigation Agency updated the committee on the theft of 2,828 cartons of cigarettes. Senator Abro called for strict action and arrests of those responsible, including senior FBR officials if implicated.

In conclusion, the committee directed departments to submit comprehensive records of smuggling and tax evasion cases, reaffirming their support for enforcement agencies to broaden the country’s revenue base and ensure justice.