A significant case of tax evasion has been uncovered as certain companies breach tobacco export limits, resulting in substantial financial losses for the country.

Companies involved in producing illegal cigarette brands are dodging taxes at the retail level, causing considerable harm to the national economy by exploiting the guise of exports.

Experts highlight that these companies, engaged in the manufacturing and sale of illicit cigarettes, are inflicting damage on the national treasury of Pakistan by evading advance taxes during tobacco processing. While the intention is to export the tobacco, a significant quantity finds its way into the local market without the required advance tax payment.

To curb the production of illegal cigarettes and ensure taxation, the government has imposed an advance tax of Pakistan Rs. 390 per kilogram on tobacco purchased from green leaf threshing units. However, this tax is not being collected, enabling cigarette manufacturers to evade their tax responsibilities.

Data from the Pakistan Tobacco Board reveals that during the fiscal year 2021-22, 52 cigarette manufacturers acquired 22.3 million kilograms of tobacco from green leaf threshing units, amounting to $65.2 million. Among these, three organized industry companies procured 12.39 million kilograms worth $53.4 million, while 49 other manufacturers purchased 10 million kilograms worth $11.8 million.

Approximately 90 percent of the tobacco acquired by these 49 manufacturers is believed to have been sold in the local market without tax payment, resulting in a substantial loss of Rs 4 billion to the national treasury in advance taxes alone.

Discrepancies between data from the Pakistan Tobacco Board and the State Bank of Pakistan suggest that not all the tobacco purchased from green leaf threshing plants for export is genuinely exported. During the same period, the Pakistan Tobacco Board claims that 22.3 million kilograms of tobacco, worth $65.2 million, were bought for export. The difference in these figures closely corresponds to the value of tobacco bought for export but unlawfully sold domestically, evading taxes.

Experts assert that companies involved in the illegal cigarette trade are engaging in double tax evasion. They avoid paying taxes when purchasing tobacco and also circumvent duties and taxes at the retail level. This dual evasion results in an annual loss of 80 billion rupees to the national treasury.

A disturbing revelation has emerged regarding China’s alleged strategy to control Uyghurs abroad and stifle Uyghur activities in other countries. According to researchers, the Chinese government is employing intimidation tactics by holding Uyghur families in China as “hostages”, thereby pressuring those living abroad to cooperate and spy on human rights activists.

Refugees and activists who have fled China told a leading news channel that China’s methods of intimidation are causing significant fractures within their communities and causing emotional distress among families.

In a poignant moment, Aleem (pseudonym) experienced a rare connection with his mother through a video call, marking their first contact in six years since Aleem sought refuge in Britain. However, this heartwarming encounter took a bitter turn as the call was controlled by an unidentified individual. Uyghurs, a predominantly Muslim minority from northwest China, live under constant surveillance and restricted communication.

Due to the sensitive nature of their interactions, a mediator facilitated the video call between Aleem and his mother. Holding two separate mobile phones in front of each other, they shared fleeting glimpses of their lives while struggling to communicate amid muffled sounds and pixelated images.

The emotional encounter took a sinister twist when Aleem received subsequent calls from a Chinese police officer. Allegedly coerced, he was instructed to attend meetings of Uyghur human rights activists, gather intelligence, and relay information to Chinese authorities. Aleem claimed he was asked to monitor anti-China protests in London and provide details about participants. Recordings of these calls were shared with the news channel, illustrating the alleged pressure tactics employed by the Chinese authorities.

Furthermore, Aleem was offered financial incentives to befriend leaders of campaign groups and socialize with them in restaurants, covertly gathering information. The Chinese officer even suggested Aleem establish a business to avoid suspicion about his sudden wealth, revealing a deeper layer of manipulation.

The threatening undertone of these interactions was unmistakable: compliance or risking harm to his family. Feeling trapped and exploited, Aleem stated, “They are using my family as a hostage. I am living in darkness.”

This coercive strategy, known as “international coercion,” involves governments monitoring and controlling their expatriates through various means. Research conducted by Dr. David Tobin and Nerula Elema at the University of Sheffield sheds light on the extent of this practice. Their study involving over 200 Uighur diaspora members from different countries exposes the widespread victimization of Uighurs living outside China.

Dr. Tobin emphasized the crucial role of family separation in this tactic, as fear of surveillance prevents open communication. This breakdown in family ties allows Chinese authorities to exercise control over individuals abroad by leveraging their families’ well-being. Such tactics compromise the safety and agency of Uyghurs, compelling them to comply with China’s demands.

Disturbingly, the practice extends beyond British borders. Uyghurs in Turkey, historically a sanctuary for them, are also experiencing the coercive tactics of the Chinese authorities. Reports suggest that police from China are pressuring Uyghurs in Turkey to spy on their own communities, leading to distrust and division among the diaspora.

The revelations highlight the far-reaching and insidious nature of China’s alleged suppression of Uyghur activities abroad, painting a grim picture of the lengths to which the Chinese government is willing to go to maintain control and silence dissent.