Recorder Report ISLAMABAD: The Federal Board of Revenue (FBR) has so far collected Rs 240 billion from tobacco industry during July-May (2024-25) which is expected to exceed Rs 285 billion by the end of June 2025, negating industry’s claims of falling government revenue. The growing numbers of tax collection from tobacco sector during 2024-25 counter their budget proposals seeking decline in tobacco taxes. This also reflects that the tobacco industry manipulates tax numbers to influence policy. The current expected tobacco tax revenue of more than Rs 285 billion in the ongoing fiscal year would align with the previous fiscal year’s numbers, indicating stable demand despite high taxation. The figures have also been confirmed by the FBR’s database of Pakistan Revenue Automation Limited (PRAL). Tobacco revenue can increase by bringing illicit trade into tax net Despite massive shortfall in tax collection of the FBR during July-May (2024-25), the collection from the tobacco industry during July-May (2024-25) is showing an upwards trend with anticipated collection of Rs 285 billion by the end of current fiscal year contrary to the proposal by one of tobacco MNC’s seen by BUSINESS RECORDER. According to official sources, the tobacco industry in Pakistan is once again under scrutiny for allegedly distorting facts to influence government policy and IMF negotiations ahead of the 2025–26 federal budget. Industry players are pushing for a reduction in the Federal Excise Duty (FED) on cigarettes—from Rs 5,050 to Rs 3,800 per 1,000 sticks—arguing that it would increase consumption and, in turn, improve tax collection. However, available data contradicts these claims. As of May 15, 2025, tobacco-related tax revenue had already reached Rs 240 billion, with estimates suggesting that the figure will exceed Rs 285 billion by the end of June. This would align with the previous fiscal year’s numbers, indicating stable demand despite high taxation. The industry’s narrative…