Pakistan Senate orders FIA probe into Rs 1.12 trillion cigarette tax theft

The Senate Subcommittee on Interior has transferred an investigation into an alleged Rs 1.12 trillion cigarette tax theft case to the Federal Investigation Agency (FIA). The decision follows dissatisfaction with the Federal Board of Revenue’s (FBR) handling of the matter. The committee, chaired by Senator Saifullah Abro, has granted the FIA two months to complete its probe and submit a detailed report.

The investigation will encompass a thorough review of all cigarette brands and manufacturers operating in the country, specifically examining their tax compliance and manufacturing operations. Authorities have also been directed to scrutinize factories that import raw materials under quota-based schemes to ensure no rules are being violated.

The probe follows a recent seizure of smuggled cigarettes by the Customs Department. During discussions, lawmakers raised questions regarding the movement of goods and the potential entry of smuggled products from Afghanistan. The committee has expanded the scope of the inquiry to include both the alleged tax theft and related smuggling activities, with a mandate to identify any officials or entities involved in wrongdoing.