FBR intensifies tobacco GLT units monitoring to control Rs100bn transactions

ISLAMABAD: In a bid to smoothly run the transaction of over Rs100 billion for procuring tobacco lead and securing Rs390 per kg advance tax, the Federal Board of Revenue (FBR) has placed seven conditions for ensuring proper record at Green Leaf Threshing (GLT) units.

There are only 14 GLT units across the country and the FBR can curb illicit cigarette manufacturing if the monitoring of GLT units is done effectively. The FBR also possessed plans to depute around 300 personnel of FC at GLT units to undertake this exercise effectively.

According to the FBR’s Federal Excise General Order, issued on July 21, 2025, in exercise of the powers conferred by Section 43 of the Federal Excise Act, 2005, a GLT unit engaged in the local sales of processed tobacco and the warehouse are directed not to remove processed tobacco unless payment of FED is made and the following procedure and conditions are fulfilled. The tobacco GLT unit will issue an S Track invoice showing particulars of the recipient, the processed tobacco and its destination, by using the login password of the S Track system.

In addition to issuance of S Track invoice, the processed tobacco would not be removed from the tobacco GLT unless the Chief Commissioner-IR concerned has received intimation two days before the date of intended removal of processed tobacco, disclosing the location of warehouse, including its GPS location.

The processed tobacco would be removed in the presence of the Officer of Inland Revenue and would be relocated in such place which is publicly accessible by an Officer of Inland Revenue and relocation is made in the presence of an Officer of Inland Revenue or any officer appointed by the Chief Commissioner-IR concerned in this behalf.

The processed tobacco would not be further relocated to any place except to the cigarette manufacturing premises. However, it would not be relocated to the cigarette manufacturing premises unless the Chief Commissioner-IR concerned has received intimation in writing two days prior to the date of removal disclosing the location of the cigarette manufacturing premises including its GPS location and the relocation is made in the presence of an Officer of Inland Revenue or any officer as appointed by the Chief Commissioner-IR in this behalf.

Meanwhile, the Pakistan Tobacco Company (PTC) arranged a media trip for journalists on Wednesday to show GLT unit located at Akora Khattak in Khyber-Pakhtunkhawa (KP). The tobacco industry is operating under the oversight of the Pakistan Tobacco Board (PTB) and is being regulated by the PTB Ordinance, 1968, which governs production targets, procurement quotas, and fair market practices.

Every year, the PTB allocates tobacco buying quotas to manufacturers based on their declared requirements, which are publicly notified to ensure transparency. This year the total demand from all the tobacco companies was around 81.5 million kilograms with 25 per cent share of the Pakistan tobacco company. However, the total crop production is nearly 140 million kilograms.

In case of surplus production, the PTB ensures proportional allocation among companies, safeguarding farmer interests. It requires companies to purchase surplus tobacco at or above the set Minimum Indicative Prices (MIP). This law is part of a broader framework including the Pakistan Tobacco Board (PTB) Ordinance, 1968 and the Tobacco Marketing Control Rules, 2016.