FBR operations under pressure: tax evasion worth billions in cigarette sector exposed

The ongoing operations against tax evasion in the cigarette industry in Pakistan are allegedly being affected by political pressure, as a result of which, despite the exposure of illegal activities worth billions of rupees, there are obstacles in effective measures.

Sources said that the officers of the Federal Board of Revenue are facing difficulties in such cases where influential political figures or business interests associated with them are involved. Due to this, some officers are avoiding action in sensitive cases.

According to the details, in 2024, the Regional Tax Office of Peshawar carried out large-scale operations and recovered unduly duty-free cigarettes and raw tobacco, which are said to be worth billions of rupees. After these operations, an increase in tax payments of some companies was also seen.

However, serious shortcomings in the security of the seized goods were later revealed, resulting in reports of goods going missing from warehouses in Mardan and Swabi. An FIR was also registered on this, but the matter became more complicated in the initial investigation.

During the investigation, some tax officers allegedly faced pressure and were tried to take statements from them against senior officials, which they rejected.

The case is now with the Federal Investigation Agency, but according to sources, progress in the investigation is slow due to political interference.

Experts say that if institutional autonomy is not ensured, the tax enforcement system may become further weakened, which will not only harm the national exchequer but may also promote illegal business.