FBR field offices to verify tax stamps on tobacco, fertilizer, sugar

ISLAMABAD: The Federal Board of Revenue (FBR) has directed its field offices to check the tax stamps on bags of tobacco, fertilizer, and sugar.

The FBR chairman has asked all chief commissioners to verify the tax stamps found on these items being sold in the market.

The field formations have been instructed to visit various markets and specifically check the tax stamps on tobacco, fertilizer, and sugar products, sources said.

According to the sources, the chief commissioners have been directed to submit a report on the verification of the tax stamps by Monday.

The FBR has deployed IR enforcement squads across the country to prevent tax evasion in five industrial sectors — sugar, fertilizers, cement, tobacco and beverages —, and provided them with luxury vehicles to improve enforcement.

Sources revealed that the IR enforcement teams have failed to enforce the tax stamps, resulting in the sale of non-duty-paid items from these industrial sectors in the market.

Several factory owners have reportedly used the delay in applying tax stamps by the FBR to their advantage, yet the FBR officials have failed to enforce the regime.

It was disclosed that the FBR has allowed cement owners to install equipment related to auto-applicators of their choice, even though the company implementing the Track and Trace system had suggested different equipment to the cement owners.

It is important to note that Prime Minister Shehbaz Sharif has formed a five-member committee led by FBR Chairman Tariq Bajwa to inquire into the delay in implementing the Track and Trace system.

The committee, formed during the prime minister’s previous term, had proposed several recommendations in its report, but they have not been implemented.