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Aftab Maken
ISLAMABAD: The Federal Board of Revenue (FBR) has sealed a clandestine cigarette manufacturing unit run by Hunter Tobacco SMC Pvt. Ltd. in District Chakwal, seizing a large quantity of raw tobacco, cigarette-manufacturing material, unstamped cigarettes and machinery in one of its biggest recent enforcement actions against the illicit cigarette trade.
The Board has pegged the overall economic impact of the operation at approximately Rs. 211 million. The FBR’s press release did not name an individual owner or director of the company, and no person has so far been publicly identified as being behind the unit; the Board says legal and criminal proceedings against those found responsible will follow once the investigation is complete.
The raid was carried out by teams from the FBR’s Intelligence & Investigation Directorate, Islamabad, working in coordination with the Inland Revenue Enforcement Network. Acting on what officials described as credible intelligence, the teams moved on Hunter Tobacco’s premises near Dharabi on Kallar Kahar Road, Chakwal.
Unit not linked to Track & Trace System
During the search, enforcement officials found the site was being used to clandestinely manufacture cigarettes without the mandatory tax stamps required under the government’s Track & Trace System (TTS). The unit had also never been integrated into the TTS — a mandatory requirement for every tobacco-sector manufacturer in the country, intended to curb tax evasion and the sale of counterfeit or duty-unpaid cigarettes.
Rs. 211 million impact, 630,000 packets’ worth of tobacco seized
The operation resulted in the seizure of roughly 12,600 kilograms of raw tobacco — enough, officials estimated, to manufacture around 630,000 packets of cigarettes — along with filter rods, cigarette paper, aluminium foil, packaging material and other production inputs. All seized material was moved to a government warehouse, after which the premises were sealed.
Of the total Rs. 211 million economic-impact estimate, around Rs. 90 million represents potential tax that would have been evaded had the cigarettes produced from the seized raw tobacco reached the market. The remainder of the figure accounts for the duty and taxes evaded on stock already found at the site, plus the assessed value of the machinery and other material seized and sealed during the raid.
FBR vows continued crackdown
The FBR reiterated that manufacturing and selling cigarettes without paying due duties and taxes, as well as failing to comply with the Track & Trace System, amounts to a serious violation of tax law. The Board said it is pursuing strict enforcement action to curb illicit manufacturing, protect legitimate businesses from unfair competition, and safeguard government revenue.
Further legal action and criminal proceedings against individuals found involved in the illegal operation will be initiated once the ongoing investigation concludes, in accordance with the law. The FBR reaffirmed its commitment to intensifying enforcement against illicit tobacco manufacturing and other forms of tax evasion, while ensuring a level playing field for compliant taxpayers and legitimate businesses.
