ISLAMABAD: The Federal Board of Revenue (FBR) categorically conveyed to cigarette manufacturing giant to ensure generation of additional revenue as committed in budget to meet the assigned target of Federal Excise Duty for 2013-14.
The tax authorities also issued a stern warning to leading cigarette manufacturers to meet the assigned revenue target to escape strict enforcement actions.
The representatives of two cigarette manufacturing giants met FBR Chairman Tariq Bajwa at FBR House and briefed the authorities on the prevailing market situation and reasons for not generating additional revenue of Rs12 billion during the current fiscal.
On the occasion, the FBR authorities reminded the representatives of the cigarette manufacturers the FED slabs were revised in the last budget on the suggestions of the cigarette company and despite the fact additional revenue of Rs12 billion could not be collected. The current FED trends shows that the additional measures are required to collect additional Rs12 billion FED in the remaining period of 2013-14.
The FBR also directed the cigarette manufacturing company to share future strategy with the tax authorities to improve FED collection during 2013-14. The two cigarettes giants had committed with the FBR to show at least 20 percent increase in FED collection following introduction of new FED slabs for different brands of cigarettes.
Through Finance Act 2013, the government had revised the FED structure on cigarettes on the basis of FED slabs proposed by the multinational cigarette manufacturing companies. The companies have also committed to make the said growth in revenue collection after incorporation of new FED structure on cigarettes.