Islamabad – In a decisive move to combat tax evasion and strengthen traceability within the tobacco sector, the Federal Board of Revenue (FBR) has issued Federal Excise General Order (FEGO) No. 01 of 2025, placing stringent restrictions on the removal and transfer of processed tobacco from Green Leaf Threshing (GLT) units and warehouses, the order, promulgated under Section 43 of the Federal Excise Act, 2005, explicitly prohibits any movement of processed tobacco unless due Federal Excise Duty (FED) has been paid in full and multiple compliance conditions are fulfilled, under the new compliance regime, every GLT unit is required to issue an S Track invoice via the designated system detailing the recipient’s particulars, quantity, and destination of the processed tobacco, additionally, a two-day advance written intimation including the GPS coordinates of the warehouse must be submitted to the relevant Chief Commissioner Inland Revenue (IR), the physical removal must be conducted in the presence of an IR officer and is restricted to publicly accessible destinations only, no onward movement is permitted unless the consignment is being shifted to a registered cigarette manufacturing facility and even that requires prior written notice and IR supervision, for export of unmanufactured tobacco, the provisions of FEGO No. 01 of 2024 dated August 28, 2024, will remain applicable, furthermore, no warehouse is authorized to store processed tobacco unless it is duly declared with both the Commissioner-IR and the Chief Commissioner-IR, all movements must be recorded in standardized formats: Annex-I for transfers from GLT to warehouse and Annex-II for warehouse to manufacturing premises, as stipulated under the previous order FEGO 01 of 2024, Inland Revenue officers are granted unfettered access to inspect all declared storage warehouses at any time, the FBR’s latest directive is aimed at eliminating loopholes in the processed tobacco supply chain, reinforcing oversight, and ensuring that due excise revenues are protected from leakage or evasion.
