The National Board of Revenue (NBR) has tightened the rules on imports of papers used in making cigarettes in the face of allegation of tax evasion.
Importers, along with import-related documents, have to submit letters from the field offices of value-added tax (VAT) to confirm that they submit return regularly and have existence, according to an order of the VAT wing of the NBR.
Duties should be assessed based on the documents, the order said.
The NBR move comes amid an allegation of VAT evasion against a section of cigarette paper importers.
The revenue administration said customs offices should send letters to the VAT office by posts and emails on the release of consignments after duty assessment. Names and volumes of imports of cleared goods will have to be stated in the letter.
The field offices of VAT will monitor the stock and release of imported goods time to time, the order said.
Cigarette is the biggest source of VAT and more than 8,600 crore sticks of cigarette are sold annually, according to industry and NBR data.