News Detail
Event Title: Senator Saifullah Abro, Convener Sub-Committee of the Senate Standing Committee on Interior and Narcotics Control presiding over a meeting of the committee at Parliament Lodges, Islamabad.
Event Date: 2026-06-18
During the Senate Sub-Committee meeting FBR official admits tax theft on tobacco amounted to Rs.40 Billion, for less than the government's own claim of one billion dollar (around Rs280 billion).
The Sub-Committee of the Senate Standing Committee on Interior and Narcotics, convened by Senator Saifullah Abro, met to review issues related to smuggling, narcotics, misuse of raw materials imported for tax-exempt areas, tax evasion in the tobacco sector, and enforcement mechanisms of the Federal Board of Revenue (FBR), including stock and inventory management.
The meeting was attended by Senator Aamir Waliuddin Chishti and Senator Hidayatullah Khan as special invitees.
Expressing displeasure over the absence of senior officials from relevant departments, Senator Saifullah Abro emphasized that officers must attend committee meetings, particularly when matters of national revenue and governance are under consideration. He stressed that it is the responsibility of departmental leadership to ensure institutions function effectively and efficiently.
The committee received a briefing on tobacco factories seized for tax evasion. Officials informed members that the FBR has seized 16 tobacco factories on charges of tax fraud. The committee was also briefed on the regulatory framework governing the tobacco industry.
During the discussion, Senator Abro questioned the government's public claim, made through advertisements, that tax evasion in the tobacco sector amounts to USD 1 billion annually. FBR officials clarified that the estimated tax evasion in the industry is approximately Rs. 40 billion, significantly lower than the figure cited in the advertisements. The FBR officials remained unaware of the government's campaign against tax theft being run across the country.
The Convenor observed that public awareness campaigns must be based on accurate and verifiable information. He directed the FBR and other concerned authorities to bring the discrepancy to the notice of the Prime Minister and take necessary steps to correct the advertisement. He said that this is the alarming situation how FBR briefed the Prime Minister and ministry of information regarding the tax theft.
The committee also examined allegations that raw materials imported for tax-exempt regions are being diverted and consumed in other parts of the country, resulting in substantial revenue losses. Senator Abro directed all relevant authorities to submit detailed proposals and complete information on the matter at the next meeting.
Highlighting concerns over the smuggling of Iranian petroleum products, the committee took notice of videos circulating on social media and urged the FBR and other enforcement agencies to take strict and effective action against those involved.
The Federal Investigation Agency (FIA) briefed the committee on progress in the case involving the theft of 2,828 cartons of cigarettes. Assuring full support to the investigation team, Senator Abro directed that strict action be taken against all individuals involved, including any senior FBR officials found responsible, and called for arrests where warranted.
Concluding the meeting, the committee directed all relevant departments to submit comprehensive records of smuggling and tax evasion cases. Members reaffirmed their commitment to supporting enforcement agencies in efforts to broaden the country's revenue base and stressed that all those found guilty must be brought to justice without discrimination.