FBR to seize cigarettes without tax stamps across country

The Federal Board of Revenue (FBR) has granted sweeping powers to provincial revenue and excise officials to seize cigarettes without valid or genuine tax stamps across Pakistan, under a newly issued Statutory Regulatory Order (SRO 1279 of 2025).

According to the order, government officers of Grade-16 and above from provincial departments — including Deputy Commissioners, Excise and Taxation Officers, and other designated officials — are now authorised to inspect and confiscate untaxed tobacco products found in retail outlets, warehouses, or during transportation.

The notification, issued under Section 27(4) of the Federal Excise Act, 2005, aims to strengthen enforcement against the illegal trade of cigarettes and ensure compliance with tax laws. These powers, previously limited to federal Inland Revenue Service (IRS) officials, have now been extended to relevant provincial authorities as well.

The move follows fiscal measures implemented under the Finance Act 2025 to curb tax evasion in the tobacco sector. Pakistan collected a record Rs298 billion in tobacco taxes in 2024, marking a significant achievement, according to the World Health Organization’s Global Tobacco Epidemic Report 2025.

The report credited Pakistan’s increase in tobacco taxation—from tripling excise duties to doubling the minimum cigarette price—as an effective example of evidence-based policy. These measures reportedly led to a 28% decline in cigarette production nationwide.

Despite these gains, the WHO warned that Pakistan still needs to advance broader tobacco control policies beyond taxation to effectively combat the public health risks associated with smoking.

The latest enforcement initiative is expected to further discourage the sale of illicit tobacco and support the government’s ongoing revenue and health objectives.