According to the sources, the volume of illegal cigarette trade continues grow rapidly as the FBR’s (Federal Board of Revenue) track and trace system is not adopted fully in the cigarette industry.
They informed that FBR has introduced a track and trace system for the 4 leading domains which includes cigarette, sugar, cement and fertilizer industry with an objective to enhance tax revenue, decrease counterfeiting and to prevent the smuggling of illicit goods.
Implemented system helps FBR to track the goods throughout the supply chain.
However, if we talk about cigarette industry only 3 firms have ado the track and trace system out of 40 firms. Whereas, the remaining haven’t brought under this system yet. Track and trace system became operational from July 1, 2022.
Industry representatives said that the delay in track and trace system in tobacco sector has resulted a huge revenue losses to the government.
Further added that the main objective of track and trace system haven’t been achieved without its uniform application across the entire industry.
However, the volume of illegal cigarette trade has got to 40% in the country, which is the highest ratio in the Asian region.
