FBR seals ‘clandestine cigarette-making unit in Chakwal
ISLAMABAD: The Federal Board of Revenue (FBR), in a major enforcement action against illicit cigarette manufacturing, has sealed a clandestine cigarette manufacturing unit in District Chakwal and seized a substantial quantity of raw tobacco, cigarette-manufacturing material, unstamped cigarettes and machinery. The overall economic impact of the operation has been estimated at approximately Rs 211…
The Federal Board of Revenue (FBR) has taken significant action against an illicit cigarette manufacturing unit in District Chakwal, estimated to have cost the economy around Rs 211 million. The operation, carried out by teams from the FBR's Intelligence & Investigation Directorate and the Inland Revenue Enforcement Network, resulted in the seizure of substantial amounts of raw tobacco, manufacturing materials, and unstamped cigarettes.
The unit, located near Dharabi on Kallar Kahar Road, was found to be operating without mandatory tax stamps and not integrated with the Track & Trace System, a requirement for tobacco-sector manufacturers. This led to the seizure of approximately 12,600 kilograms of raw tobacco, sufficient to produce 630,000 packets of cigarettes, along with various manufacturing inputs.
The economic impact of the operation is attributed to potential tax evasion from the sale of these cigarettes, estimated at Rs 90 million, as well as the evasion of duties and taxes on the seized goods. The FBR has emphasized that the manufacture and sale of cigarettes without payment of applicable duties and taxes, alongside non-compliance with the Track & Trace System, are serious violations of tax laws.
The Board is committed to intensifying enforcement against illicit tobacco manufacturing and tax evasion, ensuring a fair and compliant business environment.
Written by urgent.news from Business Recorder's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
