FBR busts biggest illegal tobacco setup in Mardan

December 07, 2025 (MLN): The Federal Board of Revenue (FBR) has unearthed the country’s largest-ever cache of undeclared cigarette-manufacturing infrastructure during a major overnight operation in Mardan.

According to details shared by FBR on its official X account, a team from the Regional Tax Office (RTO) Peshawar raided the premises of Universal Tobacco Company (Pvt) Ltd, where undeclared plant and machinery were found operating secretly to prepare cut tobacco for illegal cigarette production.

The seized equipment, capable of producing 6,000 to 7,000 kilograms of processed tobacco per day, represents the first and largest detection of such concealed infrastructure to date.

This development marked a major blow to the illegal tobacco network in the region.

FBR stated that the enforcement team executed the action “without succumbing to any influence,” which shows the tax authority’s strengthened resolve to protect national revenue.

All machinery has been confiscated, while confiscation and prosecution proceedings are now underway against the company.

The operation forms part of the government’s broader crackdown on illicit cigarette production, initiated under the directives of the Prime Minister.

To tighten oversight, FBR has deployed 120 Pakistan Rangers personnel across GLT units nationwide, in addition to installing permanent monitors under Section 40B of the Sales Tax Act and Section 45 of the Federal Excise Act to ensure lawful production and compliance.

FBR noted that such targeted actions will help curb illegal tobacco manufacturing in the coming days, which reiterates its commitment to strict enforcement of tax laws and the elimination of illicit production across the tobacco sector.

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