Provincial Tax Officers Empowered to Seize Illicit Cigarettes Under New FBR Notification
In a significant development to combat the illegal cigarette trade, the Federal Board of Revenue (FBR) has authorized provincial tax and revenue officers to seize smuggled or non-duty-paid cigarettes from retail outlets, warehouses, and vehicles.
The move comes through a newly issued Statutory Regulatory Order (S.R.O. 1279(I)/2025), released on Tuesday, aiming to strengthen enforcement efforts across provinces.
Expanded Enforcement Powers
Under the new S.R.O., provincial officers are now allowed to exercise specific powers granted to the Inland Revenue Service under the Federal Excise Act, 2005. This includes actions under:
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Section 26 – relating to inspection and seizure of goods
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Section 27(1) – covering powers to enter premises and examine stocks
The order applies specifically to cigarettes found at retail shops, warehouses, or being transported on public roads.
Officers Authorized to Act
The following provincial officers are now empowered under this directive:
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Deputy Commissioner
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Additional Deputy Commissioner
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Assistant Commissioner
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Central Assistant Revenue Officer, or
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Any officer with an equivalent designation in the provincial tax or revenue department hierarchy
However, enforcement is subject to one key condition: the action must be conducted by or in coordination with Excise and Taxation Officers, Assistant Excise and Taxation Officers, or any Excise officer not below BS-16 grade.
Strengthening Anti-Smuggling Measures
This move is part of broader efforts by the government to crack down on tax evasion and curb the growing presence of illicit tobacco products in the market. The illegal cigarette trade not only affects public health but also results in billions in lost tax revenue each year.
A Step Toward Better Compliance
With this new authority granted to provincial officers, the government aims to enhance regulatory oversight and ensure stricter compliance with excise tax laws, particularly in the retail tobacco sector.
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