SLAMABAD: Federal Board of Revenue (FBR) has started probe into alleged tax evasion by international beverage companies including Pepsi and Coca Cola operating in the country.
Sources in the Federal Board of Revenue (FBR) confirmed that the competent authorities had authorized the tax offices to depute tax officials at the factories of beverage manufacturing by Pepsi and Coca Cola at various cities of the country.
The offices of Inland Revenue have been instructed to depute staff at the factories and conduct daily monitoring of consumption of concentrate for bottlers and daily production and dispatch of concentrate for manufacturers and accordingly reported.
Chief Commissioners of Inland Revenue (CCIR) have been directed to ensure vigilance teams that no lapse should occur in duty of the posted staff.
The sources said that tax offices had deputed staff at the factories of beverage companies for a period of 30 days under Section 40B of the Sales Tax Act, 1990.
Furthermore, the FBR directed the field offices to provide a comprehensive report on outcome of the monitoring under Section 40B in order to finalize the tax evasion (if any).
The FBR posted the tax officials at beverage factories included: Pakistan Beverages Limited at SITE Karachi; The Coca Cola Export Corporation at Raiwind Road, Lahore; Pepsi Cola International (Pvt) Limited at Hattar Industrial Estate, Hattar, Islamabad; Coca Cola Beverages (Pvt) Limited at 23 KM, Raiwind Road, Lahore; Coca Cola Beverages (Pvt) Limited at Industrial Estate Phase 2, Multan; Coca Cola Beverages (Pvt) Limited at Khyali Bypass Road, Gujranwala; Coca Cola Beverages (Pvt) Limited at Industrial City Phase II, Sahianwala, Faisalabad; Coca Cola Beverages (Pvt) Limited, Shahbaz Pur Road, Rahim Yar Khan; Coca Cola Beverages (Pvt) Limited at Haripur, Khyber Pakhtunkhwa; Coca Cola Beverages (Pvt) Limited at Estate Avenue SITE, Karachi.
Through Finance Supplementary Act, 2023, the government enhanced the rate of federal excise duty on all types of aerated water from 13 per cent to 20 per cent and 10 per cent Federal Excise Duty (FED) has been imposed on sugary fruit juices, syrups and squashes, waters whether or not containing added sugar or artificial sweeteners excluding mineral and aerated water.
