AJK Authorities Crack Down on Tax Evasion in Cigarette Industry

In a recent development, a joint operation by the Azad Jammu and Kashmir (AJK) excise and taxation department and police has intensified its crackdown on tax evasion within the cigarette industry of AJK. Acting on the directives of the Prime Minister of AJK, the operation targeted tax-evading cigarette manufacturing factories across various areas of AJK.

During the operation, raids were conducted on warehouses and offices of several tobacco companies including National Tobacco Company, Walton Tobacco Company, Chinar Tobacco Company, and Warna Tobacco Company in Mirpur, Bhimber, and Barnala. Significant quantities of raw materials and finished products were seized during these raids.

For instance, at a warehouse of Watan Tobacco Company, authorities confiscated 3,230 bags of raw tobacco, along with other materials used in cigarette production. The warehouse was sealed, and legal action was initiated against the responsible individuals. Similar raids at other locations led to the seizure of thousands of cartons of illegal cigarettes and substantial amounts of raw tobacco.

It has been revealed that the AJK tax authorities are facing significant revenue losses annually due to tax evasion in the cigarette sector. The illegal cigarettes manufactured in AJK are reportedly being smuggled to various parts of Punjab, exacerbating the issue.

Despite the passing of deadlines, the implementation of a track and trace system in cigarette factories in AJK has not been completed, raising concerns about the continued evasion of taxes in the region.

This crackdown signifies a concerted effort to combat tax evasion and uphold financial regulations within the cigarette industry of AJK, aiming to curb illicit activities and protect government revenues.