During the search, officials discovered that cigarettes were allegedly being manufactured secretly without the mandatory tax stamps required under the Track and Trace System. The FBR said the manufacturing unit was also not connected to the Track and Trace System, which is mandatory for tobacco manufacturers.
Officials seized approximately 12,600 kilograms of raw tobacco, enough to produce around 630,000 cigarette packs. Filter rods, cigarette paper, aluminium foil, packaging material and other cigarette-manufacturing supplies were also confiscated.
The seized goods were shifted to a government warehouse, while the factory was sealed. According to the FBR, the operation prevented an estimated Rs90 million in potential tax evasion that could have resulted from the sale of cigarettes manufactured from the seized tobacco.
The total estimated value of the seized stock, machinery and other materials, including potential duties and taxes, stands at around Rs210 million. The FBR said manufacturing and selling cigarettes without payment of applicable duties and taxes, as well as failure to comply with the Track and Trace System, constitutes a serious violation of tax laws.
The board said strict enforcement measures were being taken to curb illegal cigarette manufacturing, protect legitimate businesses and safeguard government revenues. Further legal action, including the initiation of criminal proceedings, will be taken against those involved after completion of the investigation, the FBR said.
The tax authority also vowed to intensify enforcement operations against illegal tobacco products and other forms of tax evasion.
