FBR tells Senate panel tobacco tax theft is Rs40bn, not $1bn

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ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday told a Senate sub-committee that estimated tax theft in the tobacco sector is around Rs40 billion annually — far below the government’s public claim of $1bn, or roughly Rs280bn.

The admission came during a meeting of the Senate Standing Committee on Interior and Narcotics sub-committee, convened by Senator Saifullah Abro to review smuggling, of narcotics, misuse of tax-exempt imports, and FBR enforcement.

Senator Abro questioned FBR officials over government advertisements claiming $1 billion in annual tobacco tax evasion. FBR officials clarified the actual estimated evasion is about Rs40bn. They also said they were unaware of the nationwide anti-tax theft campaign being run by the federal government.

Expressing displeasure, the convenor said public awareness campaigns must be based on “accurate and verifiable information”. He directed FBR and relevant authorities to bring the discrepancy to the prime minister’s notice and correct the advertisements.