LAHORE: The Federal Board of Revenue (FBR) has granted new powers to provincial authorities to help stop the illegal trade of cigarettes across Pakistan.
In a move to strengthen enforcement, the FBR issued SRO 1279(I)/2025 on July 15, allowing designated officers from provincial departments to act on behalf of Inland Revenue (IR) officers in seizing illicit cigarettes from retail shops, warehouses, and vehicles.
According to the FBR, this decision is made under the Federal Excise Act, 2005, and aims to support the crackdown against untaxed and fake cigarettes being sold in the market.
Under the new powers:
• Deputy Commissioners, Assistant Commissioners, and equivalent officials from provincial revenue departments can now inspect cigarettes stored in warehouses.
• Excise and Taxation Officers (not below BS-16) can act against cigarettes being sold in retail outlets or transported in vehicles on roads.
These officers are allowed to seize cigarettes and the transport vehicles if:
1. The cigarettes do not have valid tax stamps issued by the FBR.
2. The tax stamps are found to be fake.
After seizure, the officers must hand over the confiscated cigarettes to the Additional Commissioner (HQ) at the nearest Regional Tax Office (RTO) for further action. To ensure transparency and coordination, they are required to report the seizure within 48 hours using a dedicated application developed by the FBR.
Furthermore, provincial Secretaries or nominated officers will review the seizure reports and forward them to the Director General, Intelligence and Investigation, FBR.
This delegation of powers is expected to increase enforcement capacity across the country, especially in areas where federal officers may have limited access or presence. The FBR stated that involving provincial authorities in this process will strengthen the national effort to reduce tax evasion in the tobacco sector.
With this move, the FBR is reaffirming its commitment to curbing the illegal sale of cigarettes and protecting legitimate tax revenue. The illegal cigarette trade causes billions in annual revenue losses, and the FBR hopes this partnership with provincial governments will make enforcement more effective and widespread.
