A. Background: For List of earlier relevant QCs, please refer to Para C.

B. Updated Commentary

Further to KQU 4042 of 17.8.26, being an important matter, we would inform you about FBR certificates: Panel directs FIA to issue notices to 108 firms (Attachment 3695.1) with emphasis in bold & Underline for quick reading.

2. A parliamentary panel on 13.8.26 directed the FIA to issue notices to 108 companies that received consumption certificates worth Rs 1,120 billion from the FBR.

3. The Sub-Committee of the Senate Standing Committee on Interior and Narcotics Control, which met under the convenorship of Senator Saifullah Abro, directed the FIA to issue notices to companies that obtained consumption certificates worth billions of rupees. All these companies should submit the same documents before the FIA which they had earlier submitted before the FBR, the convener said.

4. During the previous meeting, the committee had directed the FIA to conduct an inquiry into Rs 1,120 billion in consumption certificates issued to different companies and to complete it within two months.

5. The parliamentary body discussed the matter related to tax exemption mechanisms in erstwhile FATA and PATA regions. The committee reviewed issuance of consumption certificates by the FBR and Customs for imported raw material exempted from taxes. Non-taxable raw materials valued at 1,120 billion rupees entered in erstwhile FATA and PATA between 2018 and 2026, the convener said.

6. During the previous meeting Abro said that two companies, including Pakistan Tobacco Company (PTC) and Philip Morris (PMI) Pakistan Limited, are the biggest importers of cigarette raw material. He said that if 94 percent of tax has been evaded, then investigations of PTC and PMI should also be conducted. The committee, during the previous directed the concerned RTOs/LTUs to furnish complete details of taxes collected and imported material received by these companies.

7. Member, FBR, told the committee that FBR could not provide records related to PTC and PMI. Law did not permit FBR to disclose such kind of information, he said.

8. The committee issued directives to issue a show-cause notice to LTU Karachi for not attending the meeting. The parliamentary body directed the FBR to submit production details of all cigarette manufacturing companies, including the brand names. The committee also sought details of tax paid by the cigarette manufacturers and advertisements they published in both print and electronic media.

C. List of Further TLQCs

(a) 3460 of 1.4.26 about FST WHT not applicable if raw material purchased from PATA/FATA; otherwise applicable - SCP

(b) TLQC 3384 of 9.12.25 about Azakhel Dry Port Compulsory for Ex FATA+PATA FST Concessional, etc imports

(c) TLQC 598 of 10.10.18 about Amendments in IT 2nd Sch re former Tribal areas, etc - SRO-1213 

(d) TLQC 595 of 6.10.18 about ST Exemption to FATA & PATA till 30.6.2023 - SRO 1212

(e) TLQC 2983 of 23.12.24 about No Minimum Tax on FATA / PATA - ATIR 

(f) TLQC 2865 of 6.8.24 about Manufacturers in Merged Districts of FATA & PATA are IT & ST exempt – SCP 

(g) TLQC 2301 of 12.4.23 about FATA & PATA Tax Exemption - KPRA Clarification 

(h) TLQC 844 of 1.7.25 about Finance Act 2019 - Gazetted version

B. Further details & services

Should you require any clarification or explanations in respect of the above or otherwise, or require Income Tax, Federal & Provincial Sales Tax or Withholding Tax Statement, Advisory, Return Filing or Review services, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com, asif.s.kasbati@professional-excellence.com.

Best regards for Here & Hereafter
Asif S Kasbati (FCA, FCMA & LLB)

Managing Partner 

Kasbati & Co (1400+ Tax, Levies, Companies, Economy, Inflation, HR, Banking, Finance, etc

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