Pakistan Announces New Crackdown on Illicit Trade

Photo courtesy of Syed Rashid Ali

Pakistan’s Federal Board of Revenue (FBR) will significantly step up its crackdown on illicit cigarette sales, starting in January, reports the Associated Press of Pakistan. The government agency plans to hire additional enforcement personnel to support its efforts.

According to the FBR’s projections, tackling illicit sales could generate between PKR200 billion and PKR250 billion in additional revenue annually, from PKR300 billion to more than PKR500 billion.

The Action to Counter Illicit Trade (ACT) Alliance welcomed the FBR’s announcement, adding that collaboration across government agencies, provincial authorities and law enforcement was essential in achieving Pakistan’s economic goals.

“We call on all stakeholders to support FBR’s efforts, reinforcing measures that strengthen tax compliance and encourage economic integrity,” ACT Alliance National Convenor Mubahsir Akram said.

Seventy percent of cigarettes sold in Pakistan currently evade taxation.