ISLAMABAD: To regulate over Rs100 billion in tobacco leaf transactions and ensure the collection of Rs390 per kilogram in advance tax, the Federal Board of Revenue (FBR) has introduced strict monitoring conditions for Green Leaf Threshing (GLT) units.
With only 14 GLT units operating nationwide, the FBR believes that close supervision at these facilities can significantly curb illicit cigarette production. The board plans to deploy around 300 Frontier Corps (FC) personnel at these sites to enhance enforcement.
As per the Federal Excise General Order issued on July 21, 2025, under Section 43 of the Federal Excise Act, 2005, no processed tobacco can be removed from a GLT unit or warehouse without paying the Federal Excise Duty (FED) and fulfilling seven specified conditions. Each GLT unit must issue an S Track invoice through the official system, detailing the recipient and destination.
Furthermore, tobacco can only be relocated after notifying the Chief Commissioner-IR two days in advance, with GPS location details. Any transfer must occur in the presence of Inland Revenue officers and can only be made to designated cigarette manufacturing premises, again with prior written notice and official supervision.
Meanwhile, the Pakistan Tobacco Company (PTC) facilitated a media visit to its GLT unit in Akora Khattak, KP, highlighting industry practices regulated by the Pakistan Tobacco Board (PTB). PTB oversees tobacco production and procurement quotas, ensuring transparency and farmer protection. This year’s crop yield was around 140 million kg, while demand stood at 81.5 million kg. Surplus is bought at or above minimum prices set by PTB.
