Islamabad, November 30, 2025 – In a major enforcement operation, the Intelligence and Investigation (I&I) wing of Inland Revenue (IR) Peshawar has recovered a large consignment of illicit cigarettes and sealed the manufacturing machinery of M/s Indus Tobacco Company, continuing the Federal Board of Revenue’s (FBR) nationwide crackdown on non-duty-paid (NDP) tobacco products.
200 Cartons of Illicit Cigarettes Recovered in Mardan
Acting on the directives of the Prime Minister and in strict compliance with FBR’s anti-illicit trade enforcement plan, the Directorate of I&I-IR Peshawar obtained a search warrant from the area magistrate and raided an undeclared godown located within the jurisdiction of Jabbar Police Station, District Mardan, on November 3, 2025.
During the operation, officers recovered 200 cartons of non-duty-paid and non-TTS cigarettes of registered brands including Business Class, Red, and Crown. These brands belong to M/s Indus Tobacco Company (Pvt) Ltd.
A contravention report regarding the seizure was forwarded to the Regional Tax Office (RTO) Peshawar on November 21, 2025 for further legal action.
Indus Tobacco Machinery Sealed After Codal Formalities
Following the contravention report, and after completing necessary approval processes, RTO Peshawar sealed the manufacturing machinery of Indus Tobacco on November 29, 2025, under Rule 28A(6) of the Federal Excise Rules, 2005. The operation was carried out by DC (IR) Arsalan Ali, under the supervision of the Chief Commissioner, RTO Peshawar.
Proceedings are now underway under Sections 21, 22, 19(3), 19(10), and 27 of the Federal Excise Act, 2005.
Armed Resistance Failed to Stop Operation
During and after the raid, I&I-IR officers faced armed resistance, reportedly involving the company’s director/owner and private guards. Despite pressure and attempts at obstruction, the enforcement teams from I&I-IR and RTO Peshawar completed the operation successfully, reaffirming FBR’s commitment to enforcing tax laws without fear or favor.
Part of FBR’s National Crackdown on Illicit Cigarette Trade
Pakistan continues to lose an estimated Rs250–300 billion annually due to illicit cigarette manufacturing and tax evasion. To counter this, the Prime Minister has ordered comprehensive action, leading the FBR to implement a multi-layered enforcement strategy, supported by key national institutions including the Pakistan Army.
Key measures include:
• Deployment of 120 Pakistan Rangers at Green Leaf Threshing (GLT) units nationwide for monitoring and security
• Posting of 200+ FBR monitors under Section 40B of the Sales Tax Act and Section 45 of the Federal Excise Act to ensure compliance at cigarette manufacturing facilities
• Disruption of illegal supply chains and monitoring of lawful production
Similar Operation Conducted Against Souvenir Tobacco
Just days earlier, on November 29, 2025, the FBR sealed the machinery of M/s Souvenir Tobacco Company after seizing non-duty-paid and non-TTS cigarettes produced in violation of federal tax laws.
The latest enforcement actions reflect FBR’s intensified nationwide drive to curb illicit cigarette production, protect government revenue, and strengthen regulatory oversight across the tobacco industry.