Govt sets target to retrieve Rs 60bn in tax from tobacco industry

ISLAMABAD: In a move to combat tax evasion, the federal government decided to take strict measures against smuggling of cigarettes in the upcoming budget 2024-25 and set a target to retrieve an estimated Rs 60 billion, ARY News reported on Friday.

Sources close to the development revealed that the government tasked a commission with collecting an estimated Rs 60 billion.

This initiative comes as part of the upcoming government budget, which is expected to introduce stringent measures against smuggling and non-duty paid goods.

Sources claimed that the shops found selling smuggled or non-duty paid cigarettes will be imposed with fines, with the shops found involved will be sealed from the next financial year.

The move is seen as crucial in curbing illicit activities in the tobacco market and ensuring compliance with tax regulations.

The International Monetary Fund (IMF) has approved the proposals put forth by the Federal Board of Revenue (FBR).

Sources stated that under current legislation, smuggled and non-duty paid cigarettes will be demolished.

To enforce these measures effectively, the FBR has initiated actions such as temporarily sealing shops involved in the illicit trade.