The Directorate of Intelligence and Investigation, the Federal Board of Revenue (FBR) has taken notice of tax evasion of over Rs90.652million by printing incorrect and low price on the packets of imported cigarettes.
According to credible information received by the agency from the sources in the FBR’s Directorate of Intelligence and Investigation Numeric Distribution Network Pvt, Lahore, was importing Camel brand cigarettes of Japan Tobacco International on which Federal Excise Duty (FED) and Sales Tax (ST) were payable on the Retail Price but this price was so low that it did not cover even the duties and taxes paid by the importer on the imported goods.
Under the law, the sources revealed that FED and ST on cigarettes are payable on the retail price to be fixed inclusive of all duties, charges and taxes (excluding the sales tax) at which any particular brand or variety of such goods should be sold to the general body of consumers.
The directorate has forwarded the contravention case to the Collector of Customs (Adjudication), Lahore, in violation of sections 79, 80, 32(1)(2) of the Customs Act, 1969.
