Daily Times

Joint teams of AJK’s excise and taxation department and police have upped its crackdown operation against tax evasion in the cigarette industry of AJK.

According to details, over the instructions of Prime Minister of AJK, crack down operation had been contained with full pace against the tax evading cigarette manufacturing factories in the areas of AJK. In this regard raids were conducted on warehouses and different offices of National Tobacco Company, Walton Tobacco Company and Chinar Tobacco Company in Mirpur, Bhimber and Barnala.

In the late evening of Wednesday, a raid had been conducted at a warehouse of Walton Tobacco Company under the supervision of DSP HQ Naseer Ahmed along with IRO Inland Muhammad Shakeel. The authorities raided warehouses situated at Barnala Road, Bhimber and confiscated raw material of cigarettes including 3,230 bags of tobacco, 45 cartons of filter paper, 504 cartons of filter rod, 90 cartons of cigarette brand Express, 31 cartons of cigarette brand Hero and 33 cartons of cigarette brand Grace. The authorities later sealed the warehouse and initiated legal procedure against the owner and the warehouse manager.

In another operation, government authorities raided warehouse of National Tobacco Company, Bhimber and seized 3,811 cartons of illegal cigarettes and more than 384,000kgs of raw tobacco. Similarly, during a raid on the Walton Tobacco Company, government authorities seized 10 cartons of illegal cigarettes, 10 bags of tobacco to prepare 100 million cigarettes and 19 cigarette paper rolls and other related material.

In another operation, authorities raided a house which was taken on rent by National Tobacco Company. During the raid, the authorities seized 85 cartons filter rods, 67 cartons cigarette paper, 17 cartons illegal cigarette, 16 cartons cigarette tape, 10,000kgs of raw tobacco and other raw material.

In a separate raid at Chanar Tobacco Company, Barnala, the authorities confiscated 731 bags of tobacco. At the moment, AJK tax authorities are losing billions of rupees annually only due to tax evasion in the cigarette sector of AJK. These illegal cigarettes which are manufactured in AJK are smuggled to the various areas of Punjab.

It is interesting to mention that despite passing of last final date, track and trace system had not been implemented in the cigarette factories located in the areas of AJK. Its also worth mentioning that illegal tobacco trade causes a revenue loss to state of Pakistan to the tune of Rupees 300 billion every year.