Karachi: In an effort to combat illegal trade and manufacturing of cigarettes, the Regional Tax Office-II (RTO-II) in Karachi has executed a significant enforcement operation against an illicit cigarette production facility on the outskirts of the city. The operation resulted in the sealing of the factory and the confiscation of machinery and stock worth hundreds of millions of rupees.

According to Press Information Department, the Inland Revenue Enforcement Squad, part of RTO-II Karachi and the Inland Revenue Enforcement Network (IREN), conducted a raid on the factory located in the Malir area. The facility was immediately sealed, and its machinery, including cigarette-making and packing machines, was confiscated. The seized equipment was valued at approximately Rs. 200 million, and around 700 kilograms of raw tobacco were found on the premises.

Initial assessments indicated that the factory had the capacity to produce about 700,000 cigarette sticks daily, leading to an estimated annual production of 200 million sticks. This illegal activity was reportedly causing an annual revenue loss of Rs. 1.2 billion to the national exchequer.

The enforcement team, led by Mr. Baqir Ali, DCIR, and coordinated by Dr. Aslam Marri, Commissioner Inland Revenue, acted swiftly to seal the premises and initiate criminal proceedings. An FIR was registered against those involved, and the confiscated materials were relocated to RTO-II Karachi’s official premises following legal protocols.

The RTO-II Karachi has reiterated its resolve to continue rigorous enforcement actions against illegal cigarette manufacturing, illicit tobacco trade, and tax evasion to protect government revenue and uphold tax laws.