FBR launches nationwide crackdown, registers five FIRs over tax evasion in cigarette sector

Following directives from the Prime Minister Shehbaz Sharif to act against widespread tax evasion in the cigarette sector, the Federal Board of Revenue (FBR) has initiated a nationwide enforcement drive against tax-evaded cigarettes and registered five FIRs against manufacturers and transporters allegedly involved in multi-million-rupee revenue losses.

As per reports, FBR teams intercepted multiple consignments of non-stamped cigarettes near Bahera Interchange, Sargodha. A vehicle carrying Universal Tobacco Company products was detained, with estimated evaded taxes amounting to Rs11.494 million.

Two FIRs were also registered against Souvenir Tobacco Company. In one case, FBR seized 250 cartons from vehicle LES-4551 and 180 cartons from vehicle JZ-2452, with an estimated tax loss of Rs27.458 million. Another FIR recorded the recovery of 62 packets of non-TTS cigarettes outside the company’s Green Leaf Threshing warehouse in Mardan.

FBR also lodged an FIR against Wembley Tobacco Industries after three vehicles transporting non-stamped cigarettes were intercepted near the same interchange at different times. The estimated evasion in this case stands at Rs47.018 million across 245, 230, and 230 cartons carried by vehicles AH-0444, RIN-571, and LES-8912 respectively.

Separately, an FBR team conducting a search at Indus Tobacco Company’s unregistered godowns in Mardan encountered armed resistance. The FIR states that after seizing a large quantity of non-TTS and TTS cigarettes, the team was intercepted by around 25 armed men who blocked their exit route, threatened officers, and attempted to forcibly retrieve the confiscated cartons.

The FIR details that the search uncovered 246.5 units (sticks or kg-equivalent) of undeclared cigarettes, prompting the agency to investigate how non-tax-paid products were leaving factories already monitored under Section 40-B of the Sales Tax Act.

All accused face prosecution under Sections 3 and 45A of the Federal Excise Act, 2005.