The Federal Board of Revenue (FBR) has officially launched its Track & Trace System in the cigarette manufacturing sector to stop Rs300 billion in annual tax evasion. The move marks a major crackdown against the illegal tobacco industry and aims to bring transparency to Pakistan’s tobacco trade.

Under the system, digital stamps and QR codes will now be mandatory on all locally produced cigarette packs, allowing real-time monitoring from production to sale. Cigarettes without this digital traceability will be considered illegal and will be seized under federal tax laws.

FBR officials stated that the illegal tobacco trade had caused massive losses to national revenue, benefiting unregistered manufacturers and smugglers. The new system will help enforce fair taxation and restore competition among legally operating companies.

“Stopping this Rs300 billion leak is a major step toward stabilizing our economy,” said an FBR spokesperson. “We are committed to eliminating the tobacco mafia and ensuring every rupee of tax is collected.”

The Track & Trace system is expected to improve compliance, increase tax collection, and curb the dominance of non-taxpaying cigarette brands. Authorities have warned retailers and distributors to immediately stop the sale of unstamped cigarettes or face strict legal action.