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Pakistan To Crack Down On Cigarette Smuggling

by Mary Swire, Tax-News.com, Hong Kong

22 May 2009

Pakistan's Federal Board of Revenue (FBR) is to begin a wide-scale clamp down on cigarette smuggling in a bid to protect and increase government tax revenues.

According to FBR officials, cigarette smuggling costs the country around PKR7.4bn in lost tax revenue on an annual basis; a fact which has prompted the formation of a plan to counter the problem.

"We are in the process of setting up of a number of teams in all the four provinces where they would conduct raids at the already marked dumping places as well as retail outlets of smuggled cigarettes," an FBR spokesperson explained.

An international study on rising trends in smuggling has found that the majority of these illegal cigarettes are smuggled into Pakistan from China and Korea - and none bear mandatory health warnings.

"The raiding teams will also take to task those unscrupulous groups that are involved in supplying cigarettes without printing the health warning on cigarette packing," the spokesperson concluded.

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