ISLAMABAD: The Federal Board of Revenue (FBR) will confiscate cigarette packs (without tax stamps) manufactured in Azad Jammu and Kashmir (AJK), but brought within the territorial jurisdiction of tariff areas of Pakistan from April 30, 2022.
Sources told Business Recorder that the government of Azad Kashmir has decided to implement the track and trace system at the cigarette manufacturing units operating within the jurisdiction of the AJK.
The FBR will confiscate all manufactured cigarettes without tax stamps coming from the AJK to the tariff areas of Pakistan.
Tax authorities of the AJK fully realise that the FBR will only allow entry of those cigarette packs manufactured in the AJK, which have affixed tax stamps.
Therefore, it would not be feasible for the units operating in the AJK to sell all stocks of cigarettes without tax stamps within the areas of the AJK.
The FBR has directed the cigarette manufactures not to remove tobacco products from the production site, factory premises or manufacturing plants without affixation of tax stamps/Unique Identification Marking (UIMs) from April 30, 2022.
The tobacco manufactured/produced in Azad Jammu and Kashmir (AJK) and erstwhile Fata/Pata shall not be allowed to enter into Pakistan’s tariff areas without affixation of tax stamps.
The FBR added that no tobacco products shall be allowed to be removed from the production site, factory premises or manufacturing plants without affixation of tax stamps/UIMs from April 30, 2022, which are to be obtained/procured from the FBR’s licensee M/s AJCL.MITAS/Authentix Consortium.
The provision of section 40C(2) of the Sales Tax Act, 1990 read with Rule 150ZF of the Sales Tax Rules 2006 mandate the FBR to notify the date for the implementation of the electronic monitoring of production and sales of goods in the manner prescribed in the law on all manufacturing sites of notified sectors, the FBR added.