Islamabad, November 30, 2025 – In a major crackdown against the illicit cigarette trade, the Federal Board of Revenue (FBR) has sealed the manufacturing machinery of M/s Souvenir Tobacco after discovering large quantities of non-duty-paid (NDP) and non–Track and Trace System (TTS) cigarettes.
According to FBR, the Regional Tax Office (RTO) Peshawar sealed the machinery on November 29, 2025, under Rule 28A(6) of the Federal Excise Rules, 2005, following all codal formalities and required approvals. The enforcement operation was led by DC (IR) Usman Asif under the supervision of the Chief Commissioner, RTO Peshawar.
Seizure of Illicit Cigarettes at GLT Godown
Earlier, on the night of November 22, 2025, RTO Peshawar intercepted and seized 62 cartons of Melburn-brand cigarettes that were non-duty-paid and not registered under the Track and Trace System. These products were recovered from the declared Green Leaf Threshing (GLT) godown of Souvenir Tobacco.
The seized cigarettes were found to be manufactured in violation of:
• Section 40C of the Sales Tax Act, 1990
• Section 45A of the Federal Excise Act, 2005
Enforcement Strengthened Nationwide
Pakistan continues to face severe revenue losses—estimated at Rs250–300 billion annually—due to illegal cigarette manufacturing and tax evasion. To combat this, the Prime Minister has directed aggressive action against illicit cigarette production and smuggling.
In line with these directives, FBR has launched a comprehensive, multi-layered enforcement strategy, backed by the Pakistan Army and federal authorities. Key components include:
• Deployment of 120 Pakistan Rangers at GLT units nationwide
• Posting of 200+ FBR monitors under Section 40B of the Sales Tax Act and Section 45 of the Federal Excise Act
• Intensified inspections, supply-chain checks, and production monitoring
These measures aim to eliminate non-duty-paid cigarettes, close gaps in monitoring systems, and disrupt illegal manufacturing networks.
Action Taken Despite Political Pressure
FBR confirmed that the enforcement team faced undue pressure from a prominent political figure attempting to influence proceedings. However, the Chief Commissioner IR and RTO Peshawar officers proceeded with the operation without compromise, reinforcing FBR’s commitment to protecting national revenue.
Further Proceedings Underway
Legal action continues under:
• Sections 21, 22, 19(3), 19(10), and 27 of the Federal Excise Act, 2005
FBR stated it will pursue the case to its full legal conclusion as part of its broader strategy to curb the illicit tobacco trade.