The Peshawar High Court (PHC) on Wednesday dismissed more than 68 petitions filed by tobacco manufacturers challenging the Federal Board of Revenue’s (FBR) directives requiring installation of CCTV cameras and electronic invoicing systems at tobacco factories.
According to media reports, a two-member bench comprising Justice Syed Arshad Ali and Justice Faheem Wali ruled that the amendments made by the FBR to the Sales Tax Rules, 2006, were legally valid and within its authority.
Petitioner companies had argued that the FBR lacked the mandate to impose such conditions and that similar surveillance requirements did not exist elsewhere in the world, warning the measures could discourage investment. They said the rules had been enforced without proper legal amendments.
Representing the FBR, Barrister Aamir Javed argued that the FBR had full legal authority to amend sales tax rules and that the changes were introduced to curb tax evasion that costs the exchequer more than Rs200 billion annually. He told the court that even an individual FBR member is legally empowered to frame rules.
The FBR maintained that CCTV integration and e-invoicing would improve transparency and ensure due taxes are collected. It said the measures would not burden investors, as businesses would only pay taxes legally owed.
After reviewing arguments, the court upheld the FBR’s position and declared the surveillance and e-invoicing requirements lawful.
