ISLAMABAD, : The Federal Government has faced a revenue loss of Rs. 45 billion during last six years on account of tax evasion, smuggling and counterfeiting in cigarette industry due to failure of government’s authorities in taking concrete steps.
According to industrial data, government had to face a revenue loss of Rs 7.5 Billion in current year, Rs 6.5 billion in 2009, Rs 6 billion in 2008, Rs 5.59 billion in 2007, Rs 5.48 billion in 2006 and Rs 4.1 billion in 2005 on account of tax evasion.
On other hand, due to counterfeiting in cigarette industry, the government had to bear a revenue loss of Rs 0.5 Billion in current year, Rs 1 billion in 2009, Rs 0.25 billion in 2008, Rs 0.24 billion in 2007, Rs 0.10 billion in 2006 and Rs 0.48 billion in 2005.
Due to smuggling, government had to swallow a bitter pill of revenue loss amounting to Rs 1.5 Billion in current year, Rs 1.5 billion in 2009, Rs 1.22 billion in 2008, Rs 1.34 billion in 2007, Rs 1.22 billion in 2006 and Rs 1.4 billion in 2005.
Industry sources said that government had failed to take practical measures to halt tax evasion, counterfeiting and smuggling in cigarette industry which was resulting in billion of rupees loss to exchequer.
A large number of factories are engaged in manufacturing fake cigarettes in areas of Khyber Pakhtunkhwa including tribal areas, Azad Kashmir, Sargodha, Okara and Bahawalangar but government authorities seem reluctant to take action against them.
Government had planned to set up raid teams to initiate action against tax evasion, counterfeiting and smuggling in cigarette industry. “But plan is yet to be implemented due to which tax evaders and smugglers are busy in minting money,” sources lamented.
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