FBR's RTO-II Karachi busts illegal cigarette factory, seizes Rs200m machinery

August 31, 2026 (MLN):  FBR's Regional Tax Office-II (RTO-II) Karachi has dismantled an illegal cigarette manufacturing unit operating on the outskirts of the city, sealing the facility and confiscating plant, machinery, and stock worth an estimated Rs200mn, as part of a wider crackdown on illicit tobacco trade.

This was directed by the prime minister, the FBR chairman, and the Director General of Intelligence & Investigation/Chief Coordinator IREN.

The raid, carried out by the Inland Revenue Enforcement Squad of RTO-II Karachi under the Inland Revenue Enforcement Network (IREN), targeted a factory in the Malir area.

Officials seized cigarette-making, packing, token, and filter machines, along with heavy-duty generators and roughly 700kg of raw tobacco found on site, said a press release issued.

According to a preliminary assessment, the seized machinery had the capacity to produce around 700,000 cigarette sticks daily, or nearly 200mn sticks annually, resulting in an estimated annual loss of Rs1.2bn to the national exchequer through evaded taxes.

Following the seizure, an FIR was registered against those involved before the Special Judge (Customs & Taxation), Karachi, and the confiscated machinery, along with raw and finished stock, was dismantled and relocated to RTO-II's official premises under due legal process.

The operation was led by DCIR Baqir Ali, coordinated by Commissioner Inland Revenue Dr Aslam Marri (also Regional Coordinator, IREN Sindh & Balochistan), and supervised by Chief Commissioner Zafar Rafique.

Criminal investigation into the matter remains ongoing.

RTO-II Karachi reiterated its resolve to continue strict enforcement against illegal cigarette manufacturing, tobacco smuggling, and tax evasion to protect government revenue and ensure compliance with tax laws.

Copyright Mettis Link News