ISLAMABAD: The Federal Board of Revenue (FBR) has sealed a cigarette manufacturing unit in Mardan, Khyber Pakhtunkhwa, and confiscated large quantities of non-duty-paid cigarettes — despite what officials describe as extraordinary pressure from a prominent political figure.
According to officials, this is the first time in Pakistan’s history that a cigarette factory linked to a political personality has been sealed, marking a significant step in the FBR’s ongoing crackdown on illicit trade. The operation, carried out by the Regional Tax Office (RTO) Peshawar, proceeded despite threats and pressure on enforcement teams. Senior officials credit the FBR Chairman and RTO Peshawar leadership for taking the unprecedented action.
Pakistan loses an estimated Rs250–300 billion annually due to illicit cigarette production and illegal trade. In response, the Prime Minister has directed strict enforcement to curb tax evasion in the sector. FBR has since launched a comprehensive multi-layered enforcement strategy, supported by the Pakistan Army and other stakeholders.
As part of this plan, around 120 Pakistan Rangers personnel have been deployed at Green Leaf Threshing (GLT) units nationwide to secure premises against illicit manufacturing. Additionally, over 200 monitors have been posted under Section 40B of the Sales Tax Act, 1990, and Section 45 of the Federal Excise Act, 2005, to oversee production and ensure tax-compliant goods movement.
Acting on these directives, RTO Peshawar seized 62 cartons of non-duty-paid, non-TTS “Melburn” cigarettes on November 22 from the declared GLT godown of M/s Souvenir Tobacco Company. The products were found in violation of Section 40C of the Sales Tax Act and Section 45A of the Federal Excise Act.
After completing legal formalities and approvals, FBR sealed the company’s manufacturing machinery on November 29 under Rule 28A(6) of the Federal Excise Rules, 2005. The operation was executed by DC (IR) Usman Asif under the supervision of the Chief Commissioner, RTO Peshawar, with further legal proceedings now under way.
Officials say the successful action — despite intense political pressure — underscores FBR’s commitment to enforcement, transparency, and safeguarding national revenue.
