AJK Govt Launches Massive Crackdown Against Tax Evasion in Cigarette Industry

Azad Jammu & Kashmir’s excise and taxation department, in collaboration with the local police force, has launched a series of extensive enforcement operations targeting tax evasion within the cigarette industry.

Under the directives of the Prime Minister of AJK, a concerted effort is currently underway to combat tax evasion specifically within cigarette manufacturing facilities across AJK.

To streamline efforts, an investigative task force has been formed by the Interior Ministry of AJK to devise strategies for tackling tax evasion within the tobacco sector.

In a recent crackdown, raids were conducted on warehouses and offices affiliated with major tobacco companies including the National Tobacco Company, Walton Tobacco Company, Chinar Tobacco Company, and Warna Tobacco Company across Mirpur, Bhimber, and Barnala.

During one such operation at a Watan Tobacco Company warehouse, authorities seized significant quantities of cigarette manufacturing materials, including raw tobacco, filter paper, and various cigarette brands. Subsequently, legal action was initiated against the responsible parties.

In separate raids on facilities belonging to the National Tobacco Company and Walton Tobacco Company, substantial quantities of illegal cigarettes and raw tobacco were confiscated, further highlighting the scale of tax evasion in the region.

Furthermore, authorities uncovered illegal activities associated with the National Tobacco Company, including the rental of a property utilized for illicit operations, leading to the confiscation of additional contraband.

In efforts to stem the flow of illicit tobacco products, authorities also seized a considerable amount of tobacco from the Chanar Tobacco Company.

It's evident that the ongoing tax evasion within the cigarette sector poses a significant financial burden on AJK's tax revenues, with billions of rupees being lost annually. Moreover, the illegal cigarettes manufactured within AJK are being smuggled into various parts of Punjab, exacerbating the issue.

Despite the lapse of deadlines, it's noteworthy that the implementation of the Track and Trace System in cigarette factories within AJK remains pending, underscoring the need for more robust regulatory measures.