FBR Seals Illegal Cigarette Factory in Chakwal, Economic Impact Estimated at Rs211 Million
- FBR sealed a clandestine cigarette manufacturing facility in Chakwal during a major enforcement operation.
- Around 12,600kg of raw tobacco, enough to produce an estimated 630,000 cigarette packets, was seized.
- Authorities estimated potential tax evasion from cigarettes made with the seized tobacco at about Rs90 million.
- FBR put the overall economic impact of the operation, including seized machinery and materials, at approximately Rs211 million.
The Federal Board of Revenue (FBR) has sealed an illegal cigarette manufacturing facility in Chakwal and seized raw tobacco, manufacturing materials, unstamped cigarettes and machinery in a major operation against illicit tobacco production.
According to the FBR, the overall economic impact of the enforcement action has been estimated at approximately Rs211 million, including potential tax losses, duties and taxes linked to stock found at the premises, and the value of machinery and other materials seized or sealed during the operation.
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The raid was carried out by teams of FBR’s Intelligence & Investigation Directorate, Islamabad, in coordination with the Inland Revenue Enforcement Network. Acting on credible information, officials raided the premises of Hunter Tobacco SMC Pvt. Ltd. near Dharabi on Kallar Kahar Road in District Chakwal.
During the search, authorities found that the facility was allegedly being used to manufacture cigarettes without the mandatory tax stamps required under the Track & Trace System. The manufacturing unit itself had also not been integrated with the Track & Trace System, despite the requirement applying to tobacco manufacturers.
Enforcement teams seized approximately 12,600 kilograms of raw tobacco from the premises. According to FBR estimates, the quantity was sufficient to manufacture around 630,000 packets of cigarettes.
Officials also recovered filter rods, cigarette paper, aluminium foil, packaging material and other inputs used in cigarette production. The seized goods were transferred to a government warehouse, while the manufacturing premises were subsequently sealed.
FBR estimated that cigarettes potentially manufactured from the seized raw tobacco could have resulted in approximately Rs90 million in tax evasion. The broader Rs211 million economic impact also takes into account estimated duties and taxes evaded on stock discovered at the facility, along with the value of machinery and other materials seized or sealed.
The tax authority said manufacturing or selling cigarettes without paying applicable duties and taxes, as well as failing to comply with the Track & Trace System, constitutes a serious violation of tax laws.
FBR said strict enforcement measures are being pursued to curb illicit cigarette manufacturing, safeguard government revenue and protect legitimate businesses operating in compliance with tax regulations.
Further legal action and criminal proceedings against those allegedly involved will be initiated in accordance with the law once the ongoing investigation is completed.
FBR also reaffirmed its commitment to intensifying action against illicit tobacco manufacturing and other forms of tax evasion while ensuring a level playing field for compliant taxpayers and legitimate businesses.
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