ISLAMABAD: The Federal Board of Revenue (FBR) came under sharp criticism on Monday after failing to provide key tobacco tax data to a Senate sub-committee, prompting lawmakers to demand a comprehensive 20-year record of tax collection, registered tobacco factories, and billions of rupees in pending dues.
The meeting of the Sub-Committee of the Senate Standing Committee on Interior and Narcotics was chaired by Senator Saifullah Abro and attended by Senators Mohammad Talha Mahmood, Dilawar Khan, and Hidayat Ullah Khan.
During the proceedings, FBR Chief of Sales Tax Javed Iqbal Tarar was asked to leave the meeting after he failed to submit the information previously requested by the committee. Members expressed concern over the lack of transparency regarding tax collection from tobacco manufacturers and the delay in providing official records.
The committee noted that customs authorities had earlier reported tobacco-related taxes amounting to Rs75 billion, while later discussions indicated that nearly Rs40 billion in taxes remained outstanding. Lawmakers directed the FBR to submit documentary evidence of pending taxes, a complete list of tobacco companies and their brands, details of imported raw materials, and tax collection records spanning the past two decades. The committee also sought a list of all registered tobacco factories over the last 20 years.
Officials informed the panel that Pakistan Tobacco Company and Philip Morris Pakistan remain among the country's largest taxpayers in the tobacco sector. The committee was also told that Rangers had been deployed to assist the FBR in preventing tax evasion and strengthening enforcement measures.
The committee further instructed the Federal Investigation Agency (FIA) to investigate the corruption case involving convicted smuggler Badshah Wazir, particularly allegations that raw materials imported for tax-exempt areas never reached their intended destinations.
The panel also reviewed Pakistan's narcotics situation, with Anti-Narcotics Force (ANF) officials reporting that the agency accounted for nearly 49% of nationwide drug seizures last year. Members discussed the increasing use of synthetic drugs and explored legal options for utilizing confiscated narcotics for pharmaceutical research instead of destroying them.
Additionally, the committee reviewed the high-profile Anmol alias "Pinky" drug trafficking case and directed law enforcement agencies to investigate alleged links between the accused and influential individuals. The Inspectors General of Police of Sindh, Punjab, and Balochistan have been summoned to the next meeting to provide further details.
