RTO-II Karachi Seals Illegal Cigarette Manufacturing Facility

KARACHI: (Staff Reporter) – The Regional Tax Office-II (RTO-II) Karachi has launched a major intelligence-based crackdown on illegal cigarette manufacturing, sealing an unauthorized production facility in the Malir area and confiscating its machinery, raw materials and finished stock.

The action was carried out by the Inland Revenue Enforcement Squad of RTO-II Karachi and the Inland Revenue Enforcement Network (IREN) in line with directives aimed at controlling the illegal production and trade of cigarettes and tobacco products.

During the raid, officials sealed the factory and took possession of its plant and machinery, including cigarette-making, packing, token and filter machines, heavy-duty generators and other equipment. The confiscated machinery was estimated to be worth around Rs200 million.

Officials also recovered approximately 700 kilograms of raw tobacco from the premises. A preliminary assessment indicated that the facility had the capacity to produce nearly 700,000 cigarette sticks daily, equivalent to around 200 million sticks annually.

According to the initial assessment, the illegal operation was potentially causing an estimated Rs1.2 billion annual loss in government revenue through tax evasion and unauthorized cigarette production.

The enforcement team sealed the premises and confiscated the complete machinery and available stock. Criminal proceedings were subsequently initiated, with an FIR registered against the individuals allegedly involved before the Special Judge (Customs & Taxation), Karachi.

Following the seizure, officials dismantled the factory’s machinery and transferred it, along with the confiscated raw and finished tobacco stock, to the official premises of RTO-II Karachi in accordance with legal procedures.

The operation was conducted by an enforcement team headed by Baqir Ali, DCIR, and coordinated by Dr. Aslam Marri, Commissioner Inland Revenue, RTO-II Karachi and Regional Coordinator IREN Sindh & Balochistan, under the supervision of Zafar Rafique, Chief Commissioner, RTO-II Karachi.

The criminal investigation into the alleged illegal manufacturing operation and those involved is ongoing. RTO-II Karachi said it would continue taking strict action against illicit cigarette production, illegal tobacco trade and tax evasion to protect government revenue and ensure compliance with tax laws.