FBR officer asked to leave Senate Panel meeting after failing to provide tobacco tax data

Senate sub committee meeting took a serious turn when Javed Iqbal Tarer, Chief Sales Tax at the Federal Board of Revenue,

Islamabad: A Senate sub committee meeting took a serious turn when Javed Iqbal Tarer, Chief Sales Tax at the Federal Board of Revenue, was asked to leave the meeting after he failed to submit the data earlier demanded by the committee on tobacco sector taxes.

The convener expressed concern that FBR had not provided a complete briefing despite repeated directions. The committee said the lack of required information created hurdles in the proceedings and made it difficult for members to examine tax collection and possible tax evasion in the tobacco sector.

The Sub Committee of the Senate Standing Committee on Interior and Narcotics met at Old PIPS Hall, Parliament Lodges, Islamabad, under the chairmanship of Senator Saifullah Abro.

The meeting was attended by Senator Mohammad Talha Mahmood, Senator Dilawar Khan and Senator Hidayat Ullah Khan.

The sub committee reviewed matters related to tax evasion in the tobacco sector, public awareness campaigns, narcotics control and enforcement measures taken by relevant departments.

During the discussion on the tobacco sector, the committee was informed that Pakistan Tobacco Company and Philip Morris Pakistan are among the major tax-paying tobacco companies.

However, the convener showed concern over the lack of information provided by FBR regarding tax collection from tobacco manufacturers.

He said FBR had not submitted a comprehensive briefing despite repeated directions from the committee. The committee sought complete details of taxes assessed, collected and pending from the tobacco industry.

It also asked FBR to submit records of all registered tobacco factories over the last 20 years. The committee was informed that Rangers had been deployed by FBR to assist in curbing tax evasion in the tobacco sector. Referring to previous briefings, the convener observed that Customs had earlier reported tobacco-related taxes of Rs75 billion.

However, later discussions indicated that around Rs40 billion remained outstanding. The committee directed FBR to submit documentary evidence regarding the pending taxes. It also asked for a complete list of tobacco companies and their brands. The committee further directed FBR to provide details of imported raw materials linked with the tobacco sector. FBR was also directed to submit revenue and tax collection data covering the past two decades.

The committee said such records are necessary to understand how much tax was assessed, how much was collected and how much still remains unpaid. The issue is important because tobacco is a major tax-paying sector, and any weakness in tax collection can cause loss to the national exchequer. The committee also reviewed public awareness campaigns related to illegal cigarettes.

The Press Information Department informed the committee that campaigns about the sale of illegal cigarettes were carried out on behalf of FBR. The convener directed PID to submit complete details of media contracts, campaign expenditures and agreements with television channels.

The committee also directed the Federal Investigation Agency to investigate the corruption case involving Badshah Wazir. The matter relates particularly to raw materials imported for tax-exempt areas that allegedly did not reach their intended destinations.

Senator Mohammad Talha Mahmood stressed that the committee’s proceedings should remain impartial and based on evidence. The committee’s directions showed that members wanted documentary proof instead of verbal claims.

At the end of the meeting, the convener directed all concerned departments, including FBR, to provide the required information before the next session.