FBR Seizes Largest Undeclared Cigarette-Manufacturing Setup in Pakistan

Peshawar – In a major crackdown on illegal tobacco production, the Regional Tax Office (RTO) Peshawar uncovered the first and largest-ever cache of undeclared cigarette-manufacturing infrastructure at a factory in Mardan on the night of 5th December 2025.

The operation targeted M/s Universal Tobacco Company (Pvt) Ltd, which was found operating undeclared machinery used to produce cut tobacco for illicit cigarette production. The factory produces well-known cigarette brands such as “Café” and “Ranger.” The seized equipment had an estimated daily production capacity of 6,000 to 7,000 kilograms of tobacco, translating into a potential revenue of approximately PKR 45 million per day if converted into cigarettes.

While the company was already running declared machinery legally, the undeclared setup was specifically used to prepare tobacco for illegal cigarette manufacturing. The enforcement operation was led by Mr. Tariq Aziz, ADCIR, with authorization from the concerned Commissioner, and the machinery has been seized with legal proceedings underway for confiscation and prosecution.

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The action demonstrates the Federal Board of Revenue’s (FBR) commitment to upholding the rule of law and protecting national revenue. Acting on directives from the Prime Minister, the FBR, with full support from the Pakistan Army, has deployed 120 Pakistan Rangers personnel at GLT units nationwide and posted dedicated monitors under Sections 40B and 45 of the Sales Tax Act, 1990, and Federal Excise Act, 2005, to ensure lawful production and prevent illegal operations.

Officials said such measures are expected to significantly reduce illicit tobacco production in the coming days, highlighting FBR’s continued efforts to enforce tax laws and eliminate illegal cigarette trade across Pakistan.