ISLAMABAD, August 11, 2026: The Federal Board of Revenue (FBR) has sealed an alleged illegal cigarette manufacturing unit in Chakwal and seized raw tobacco, unstamped cigarettes, machinery and other production material, with the overall economic impact estimated at Rs211 million.
The operation was carried out by teams of the FBR’s Intelligence & Investigation Directorate, Islamabad, in coordination with the Inland Revenue Enforcement Network.
According to the FBR, the raid was conducted at Hunter Tobacco SMC Pvt. Ltd., located near Dharabi on Kallar Kahar Road in Chakwal, following information about alleged illicit cigarette production.
Unit Allegedly Operating Outside Track & Trace System
During the search, FBR teams found the premises allegedly being used to manufacture cigarettes without the mandatory tax stamps required under the Track & Trace System.
The unit had also not been integrated with the Track & Trace System, which is mandatory for tobacco manufacturers, the FBR said.
Enforcement teams seized around 12,600 kilograms of raw tobacco, which the authority said was sufficient to produce approximately 630,000 cigarette packets.
Filter rods, cigarette paper, aluminium foil, packaging material and other manufacturing inputs were also recovered.
The seized material was shifted to a government warehouse, while the premises were sealed.
Potential Tax Evasion Estimated at Rs90 Million
The FBR estimated that cigarettes manufactured from the seized raw tobacco could have resulted in around Rs90 million in potential tax evasion if sold without payment of applicable duties and taxes.
The broader estimated economic impact of Rs211 million also includes alleged duties and taxes linked to stock found at the premises, along with the value of machinery and other materials seized or sealed during the operation.
The tax authority said the manufacture and sale of cigarettes without payment of applicable duties and taxes, as well as failure to comply with the Track & Trace System, constitute serious violations of tax laws.
Further Legal Action Planned
The FBR said further legal and criminal proceedings would be initiated against those found involved after completion of the ongoing investigation.
The board added that it would continue enforcement against illicit tobacco manufacturing and tax evasion to protect government revenue and ensure a level playing field for compliant businesses.
Also Read: Senior FBR Officer Nadeem Hussain Rizvi Retires
Today's E-Paper