ISLAMABAD: Despite extraordinary pressure by a prominent political personality, the Federal Board of Revenue (FBR) has sealed a cigarette manufacturing factory in district Mardan Khyber Pakhtunkhwa and confiscated Non-Duty Paid cigarettes.
This is for the first time in the history of Pakistan that the factory has been sealed despite of extreme political pressure on the FBR. However, the tax authorities continued its enforcement drive against illicit sectors backed by support of Prime Minister.
The strange part of the story is that the FBR sealed the cigarette factory in the presence of political pressure and apparent threats to the FBR officials. The credit goes to FBR Chairman and Regional Tax Office Peshawar for taking such a bold step. This is evident from the fact that no cigarette factory owned by political personality was ever sealed in the past.
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According to sources, Pakistan is facing the menace of illicit trade and unlawful manufacture of cigarettes, a problem estimated to be causing an annual revenue loss of nearly Rs. 250 to 300 billion to the national exchequer. Recognising the gravity of this challenge and its far-reaching economic implications, the Prime Minister has issued clear directions to decisively curb the illicit cigarette trade and ensure strict enforcement of tax laws.
In compliance with these directions of the Prime Minister, the FBR formulated a comprehensive and multi-layered enforcement plan aimed at eliminating non-duty-paid cigarette production, strengthening monitoring mechanisms, and disrupting illegal supply chains. This national effort received broad support from all stakeholders, most notably the Pakistan Army, which has extended full cooperation to reinforce enforcement operations.
As part of the coordinated strategy, approximately 120 Pakistan Rangers personnel have been deployed at Green Leaf Threshing (GLT) units across the country to assist in monitoring and securing the premises against illicit manufacturing activities.
Simultaneously, FBR has also posted more than 200 dedicated monitors under Section 40B of the Sales Tax Act, 1990, and Section 45 of the Federal Excise Act, 2005, to oversee production, ensure lawful removal of goods, and verify tax compliance at manufacturing facilities.
Following the directions of the Prime Minister and in strict compliance with FBR’s enforcement plan, Regional Tax Office Peshawar successfully seized 62 cartons of non-duty paid/ non TTS cigarettes of “Melburn” brand on the night of 22nd November, 2025 at around 11.30 pm from the declared GLT godown of M/S Souvenir Tobacco Company.
The seized non-duty paid/ non-TTS cigarettes were manufactured by the company in violation of Section 40C of the Sales Tax Act, 1990 and Section 45A of the Federal Excise Act, 2005.
After completing the codal formalities and necessary approvals, the manufacturing machinery of M/s Souvenir Tobacco was sealed under Rule 28A (6) of the Federal Excise Rules, 2005 by the officers of RTO Peshawar on 29.11.2025. The operation was executed by DC (IR) Usman Asif under the supervision of the Chief Commissioner, RTO Peshawar. Further proceedings under Sections 21, 22, 19(3), 19(10), and 27 of the Federal Excise Act, 2005 are under way.
Despite immense pressure exerted by a prominent political figure, the Chief Commissioner-IR RTO Peshawar and his enforcement team successfully carried out the action without succumbing to any political influence, demonstrating FBR’s unwavering commitment to upholding the rule of law and protecting the national revenue.
Copyright Business Recorder, 2025