Islamabad: The Federal Board of Revenue (FBR) has taken significant action against illegal cigarette manufacturing by sealing a clandestine unit in District Chakwal. The operation, which resulted in the seizure of raw tobacco, cigarette-manufacturing materials, unstamped cigarettes, and machinery, is estimated to have a financial impact of approximately Rs. 211 million.
According to Press Information Department, the FBR’s Intelligence & Investigation Directorate, Islamabad, in collaboration with the Inland Revenue Enforcement Network, conducted the operation based on credible intelligence. The manufacturing unit, operated by Hunter Tobacco SMC Pvt. Ltd. near Dharabi on Kallar Kahar Road, was found to be producing cigarettes without mandatory tax stamps under the Track & Trace System, a compulsory requirement for tobacco manufacturers.
During the raid, enforcement teams confiscated around 12,600 kilograms of raw tobacco, sufficient for producing approximately 630,000 packets of cigarettes, along with other manufacturing inputs. The seized items were transferred to a government warehouse, and the facility was subsequently sealed.
The economic impact, including potential tax evasion of Rs. 90 million from the sale of cigarettes made from the seized tobacco, also accounts for the estimated duty and taxes evaded and the value of seized machinery and materials.
The FBR emphasized the serious violation of tax laws posed by manufacturing and selling unstamped cigarettes and non-compliance with the Track & Trace System. The agency is committed to strict enforcement measures to curb illicit manufacturing, protect legitimate businesses, and safeguard government revenue.
Further legal and criminal proceedings against those involved in the illicit activities will be pursued following the completion of the ongoing investigation. The FBR continues to prioritize enforcement against illegal tobacco manufacturing and other tax evasion forms, aiming to ensure fair competition for compliant taxpayers and legitimate businesses.