ISLAMABAD: Anti-tobacco advocates have expressed concerns over the rejection of the bid offered by an internationally reputed company for the track and trace system for cigarettes.

They alleged that the Federal Board of Revenue (FBR) was going to award the contract to a firm which received funds from the tobacco industry.

Awarding contract to the company beingfunded by the tobacco industry will help the industry avoid taxes worth billions of rupees every year, they added.

However, the FBR rejected the allegations and claimed that thewell-known company could not meet the Public Procurement Regulatory Authority (PPRA) rules.

According to the track and trace policy, the FBR will engage a company which will apply stamps on each packet of cigarettes. The stamp will be identifiable and verifiable due to which the tobacco industry will not be able to avoid taxes as levies would be imposed on the basis and numbers of stamps.

Pakistan National Heart Association General Secretary of Sanaullah Ghumman in a statement said the decision to introduce the track and trace system was a positive step against the sale of illegal cigarettes.

`However, FBR is giving the contract to a company which is close to the tobacco industry. It will result in the loss of billions of rupees to the exchequer,` he said.

Mr Ghumman said tobacco was the major cause of a number of diseases so steps should be taken todiscourage the sale of cigarettes by increasing the prices.

`If tax evasion is allowed, the price of cigarettes would decrease and ultimately it will become affordable for the youth which is the major target of the tobacco industry,` he said.

Representative of Campaign for Tobacco-Free Kids Malik Imran told Dawn that the company which had already worked on the track and trace system for cigarettes had offered the lowest bid.

However, it had stated that the rates can be changedifproduction of cigarettes was less than four billion sticks per year.

`FBR has rejected the bid saying according to PPRA rules rates cannot be changed. In Pakistan every year 80 billion sticks of cigarettes are produced.

The contract is being given to a company which gets funds from the tobacco industry. As we have documentary proof that the company gets funding from tobacco industry there will be confiict ofinterest,` he said.

`We fear that a `front` company of tobacco industry would use same stamps for different regions due to which tax would be avoided,` Mr Imran said.

When contacted, FBR spokesperson Dr Hamid Ateeg said the track and trace system was introduced over a decade ago.

`We also wanted to introduce it and received 11 bids. During the technical evaluation it was decide d to drop one company as it had stated that the rates would be changed if less than four billion sticks of cigarettes were manufactured in Pakistan in a year. As it was against the PPRA rules we rejected it. However, the other two companies, which are being considered, are also well reputed,` he said.

Dr Ateeg said the critics should lodge their complaints with the FBR which would consider them.

`I don`t have any information if any bidder receives funding from the tobacco industry,` he said.