The Federal Board of Revenue (FBR) has launched a major crackdown in Peshawar, sealing two well-known tobacco manufacturers—M/s Souvenir Tobacco and M/s Indus Tobacco Company (Pvt) Ltd. The action follows allegations that both units were producing and removing non-duty-paid cigarettes without mandatory Track and Trace System (TTS) stamps. The move marks a significant escalation in Pakistan’s fight against the growing illicit cigarette trade.
Massive Enforcement Operation Targets Illegal Cigarette Production
According to official sources, the crackdown was carried out under direct instructions from the Prime Minister. The FBR prepared a strict, multi-layered enforcement plan to curb non-duty-paid cigarette manufacturing, strengthen monitoring systems, and dismantle illegal supply chains nationwide. This initiative has received strong support from all key stakeholders, including the Pakistan Army.
As part of the operation, around 120 Rangers were deployed at Green Leaf Threshing (GLT) units across the country. Their role is to secure facilities and prevent illegal production. Additionally, the FBR stationed more than 200 monitors under Section 40B of the Sales Tax Act, 1990, and Section 45 of the Federal Excise Act, 2005. These monitors oversee production, ensure lawful product removal, and verify proper tax compliance.
The enforcement drive intensified on November 3, 2025, when the Directorate of Intelligence & Investigation-IR Peshawar raided an undeclared godown in District Mardan. Officers recovered 200 cartons of non-TTS and non-duty-paid cigarettes labeled as Business Class, Red, and Crown—brands registered to M/s Indus Tobacco Company. After submitting a Contravention Report, authorities sealed the company’s machinery on November 29, 2025, under Rule 28A(6) of the Federal Excise Rules, 2005.
FBR Teams Face Armed Resistance but Continue Crackdown
Officials reported that enforcement teams encountered armed resistance during the raid, allegedly from personnel linked to the company’s director and owner. Despite intense pressure, FBR officers remained firm, executing the operation successfully and demonstrating the institution’s commitment to safeguarding national revenue.
Earlier on the same day, a similar action was taken against M/s Souvenir Tobacco Company, also found involved in producing non-TTS and non-duty-paid cigarettes. Its machinery was sealed as well.
Authorities say Pakistan loses an estimated Rs. 250–300 billion annually due to illicit cigarette manufacturing. The recent operations highlight how the Track and Trace System has strengthened enforcement by providing unique identifying marks, digital fingerprints, anti-counterfeit features, and reliable forensic trails—making it easier to distinguish legitimate products from illegal ones.
