To stop cigarette tax evasion, Pakistan will install additional roadblocks.

In an effort to stop sales tax and excise duty evasion, the administration agreed on Friday to set up new checkpoints.

Sources claim that in order to prevent sales tax and FED evasion in the cigarette manufacturing industry, a tax checkpoint will be established at Kohala Bridge for entry from Muzaffarabad to Murree and Abbottabad.

To stop the smuggling of illicit cigarettes into Pakistan, more checkpoints will be set up in Azad Jammu & Kashmir. For access into Pakistan from Mirpur, a checkpoint is proposed on the Mangla Dam Road.

According to sources, Rs. 40 billion worth of cigarettes are created annually by avoiding FED and sales tax, while illegal cigarette production results in Rs. 300 billion in tax avoidance.