FBR Seals 2 Famous Factories for Producing Non-TTS, Non-Duty Paid Cigarettes

The Federal Board of Revenue’s field offices in Peshawar have sealed two prominent tobacco manufacturing units, M/s Souvenir Tobacco and M/s Indus Tobacco Company (Pvt) Ltd, on allegations of manufacturing and removing non-duty-paid and non-track and trace stamp (TTS) cigarettes. Sources told ProPakistani that in compliance with the directions of the Prime Minister of Pakistan, the FBR formulated a comprehensive and multi-layered enforcement plan aimed at eliminating non-duty-paid cigarette production, strengthening monitoring mechanisms, and disrupting illegal supply chains. This national effort has received broad support from all stakeholders, most notably the Pakistan Army, which has extended full cooperation to reinforce enforcement operations. As part of the coordinated strategy, approximately 120 Pakistan Rangers personnel have been deployed at Green Leaf Threshing (GLT) units across the country to assist in monitoring and securing the premises against illicit manufacturing activities. Simultaneously, the FBR has posted more than 200 dedicated monitors under Section 40B of the Sales Tax Act, 1990, and Section 45 of the Federal Excise Act, 2005, to oversee production, ensure lawful removal of goods, and verify tax compliance at manufacturing facilities. Following the Prime Minister’s directions and in strict compliance with the FBR’s enforcement plan, the Directorate of Intelligence and Investigation-IR Peshawar, after obtaining a warrant from the area magistrate, conducted a successful raid on an undeclared godown in the area of Jabbar Police Station, District Mardan, KP, on 03.11.2025. During the search, a total of 200 cartons of non-duty-paid/non-TTS cigarettes with brand names Business Class, Red, and Crown were recovered. The mentioned cigarettes are registered brands of M/s Indus Tobacco Company (Pvt) Ltd. Accordingly, the Directorate of I&I-IR Peshawar forwarded a Contravention Report on 21.11.2025 to the Regional Tax Office Peshawar. Acting upon the contravention report, and after completing the codal formalities and necessary approvals, the manufacturing machinery of M/s Indus Tobacco Company was sealed under Rule 28A(6) of the Federal Excise Rules, 2005, by officers of RTO Peshawar on 29.11.2025. The operation was executed by DC(IR) Arsalan Ali under the supervision of the Chief Commissioner, RTO Peshawar. Further proceedings under sections 21, 22, 19(3), 19(10), and 27 of the Federal Excise Act, 2005, are underway. During and after the search proceedings, the officers and officials of I&I-IR Peshawar faced stiff resistance from armed personnel, including the director/owner of the company. Despite immense pressure and armed resistance, both I&I-IR and the Chief Commissioner-IR RTO Peshawar and his enforcement team successfully acted without succumbing to any influence, demonstrating the FBR’s unwavering commitment to upholding the rule of law and protecting national revenue. Earlier, a similar action was taken against another prominent manufacturer, M/s Souvenir Tobacco Company, on 29.11.2025, which was found involved in manufacturing and removal of non-duty-paid/non-TTS cigarettes. The machinery of the said company was also sealed. Officials said that the FBR is continuing its action against illicit trade and the manufacturing of non-duty-paid cigarettes. Pakistan is facing the menace of illicit trade and unlawful manufacture of cigarettes, a problem estimated to be causing an annual revenue loss of nearly Rs. 250 to 300 billion to the national exchequer. This clearly shows how TTS has helped enforcement action, providing visible deterrence and a unique identifying mark that distinguishes tax-paid from non-tax-paid cigarettes. The security features and digital fingerprints offer anti-counterfeiting and forensic trails.