FBR’s RTO-II Karachi seizes Rs200m in machinery and tobacco from a Malir factory accused of illegal cigarette manufacturing.
KARACHI: The Federal Board of Revenue’s (FBR) Regional Tax Office-II (RTO-II) Karachi has sealed an alleged illegal cigarette manufacturing facility in Malir and confiscated plant, machinery and tobacco valued at approximately Rs200 million.
The operation is estimated to have prevented an annual revenue loss of around Rs1.2 billion to the national exchequer, according to an FBR press release issued on Sunday.
The raid was conducted by the Inland Revenue Enforcement Squad of RTO-II Karachi and the Inland Revenue Enforcement Network (IREN) as part of intensified enforcement against illegal cigarette manufacturing, illicit tobacco trade and tax evasion.
The action followed directions from the Prime Minister, Chairman FBR and Director General Intelligence and Investigation/Chief Coordinator IREN.
Machinery and tobacco confiscated
During the raid, the enforcement team sealed the factory premises and confiscated the installed plant and machinery, along with raw and finished stock.
The seized equipment included cigarette-making machines, packing machines, token machines, filter machines, heavy-duty generators and other related machinery, with an estimated value of Rs200 million.
Around 700 kilograms of raw tobacco was also recovered from the premises.
Factory had capacity to produce 200 million cigarettes annually
A preliminary assessment found that the machinery installed at the facility had an estimated production capacity of 700,000 cigarette sticks per day.
This translates into an estimated annual production capacity of around 200 million cigarette sticks.
The FBR said the alleged illegal manufacturing activity was consequently causing an estimated Rs1.2 billion annual loss to the national exchequer.
The enforcement team sealed the facility and confiscated the plant, machinery and stock.
Criminal proceedings initiated
Following the operation, criminal proceedings were initiated against the persons allegedly involved in the illegal manufacturing activity.
An FIR was registered before the Special Judge (Customs & Taxation), Karachi.
The confiscated plant and machinery were subsequently dismantled and shifted from the factory premises to the official premises of RTO-II Karachi. The raw and finished stock was also transferred in accordance with the prescribed legal procedure.
Investigation underway
The enforcement operation was conducted by a team headed by Baqir Ali, DCIR, and coordinated by Dr Aslam Marri, Commissioner Inland Revenue, RTO-II Karachi and Regional Coordinator IREN Sindh and Balochistan.
The operation was carried out under the supervision of Zafar Rafique, Chief Commissioner, RTO-II Karachi.
The criminal investigation into the alleged illegal manufacturing operation and the individuals involved is currently underway.
RTO-II Karachi reaffirmed its commitment to taking strict and sustained enforcement action against illegal cigarette manufacturing, illicit tobacco trade and tax evasion.
The tax authority said such measures are aimed at safeguarding government revenue, protecting compliant businesses and ensuring adherence to applicable tax laws.