Night-Time Factory Allegedly Used to Evade Taxes
Authorities have uncovered a large illegal cigarette manufacturing operation in Punjab’s Chakwal district, seizing machinery, raw tobacco and finished products worth more than Rs250 million.
The factory was located near Dhrabi village in Chakwal and was raided following intelligence about suspected illegal cigarette production in the area.
The operation was jointly conducted by enforcement and intelligence officials, including the Federal Board of Revenue’s Intelligence and Investigation wing.
According to FBR officials, the facility was not registered with the tax authority and was allegedly operating mainly at night.
Officials believe the timing was intended to conceal production and avoid Federal Excise Duty and General Sales Tax obligations.
The factory was reportedly manufacturing cigarettes under several brand names before supplying them to the market.
Authorities also found cigarette packets without the required tax barcodes.
Officials said the absence of such markings was another indication that the products were being manufactured and distributed outside the formal tax system.
11 Cigarette Machines and Thousands of Packets Seized
The raid revealed what officials described as a complete cigarette production facility rather than a small underground operation.
Authorities found 11 cigarette manufacturing machines and three industrial generators at the premises.
All the machinery was sealed during the operation.
A large quantity of finished cigarettes and manufacturing material was also recovered.
Officials seized approximately 72,000 cigarette packets that were reportedly ready for sale.
They also recovered around 12,000 kilograms of raw tobacco, showing the scale at which the factory was allegedly operating.
More than 107,000 empty cigarette packets were found at the site.
Authorities also recovered packaging materials, including white paper rolls, coloured packaging rolls, aluminium foil and polythene.
Thirty cartons containing filter rods and 14 cartons of filter paper were also seized.
Drums containing adhesive and other materials used during cigarette production were taken into custody as part of the operation.
The initial value of the machinery, finished cigarettes and raw materials has been estimated at more than Rs250 million.
Officials are conducting further calculations to determine how much Federal Excise Duty, sales tax and other government revenue may have allegedly been avoided through the operation.
FBR Intensifies Crackdown on Illegal Tobacco Industry
The latest raid comes as the FBR intensifies enforcement against unregistered cigarette factories and non-duty-paid tobacco products across Pakistan.
The tax authority has previously warned that illegal cigarette manufacturing causes enormous losses to the national exchequer.
According to the FBR, illicit cigarette production and trade have been estimated to cause annual government revenue losses of around Rs250 billion to Rs300 billion.
Authorities have increased monitoring of cigarette manufacturing facilities and supply chains as part of efforts to improve tax compliance.
The FBR has also deployed dedicated monitors at tobacco-related manufacturing facilities to supervise production and verify that applicable duties and taxes are being paid.
Previous enforcement operations have resulted in cigarette-making machinery, finished products and raw materials being confiscated from suspected illegal production facilities.
The Chakwal operation is among the latest major actions targeting the sector.
Investigators are now working to identify the people and businesses allegedly connected with the Dhrabi factory.
Authorities are also expected to examine how the cigarettes were being distributed and whether additional individuals or supply networks were involved.
Further legal and tax proceedings are expected once officials complete their assessment of the seized goods and calculate the alleged revenue loss.
