FBR Seals Hunter Tobacco Cigarette Manufacturing Unit in Chakwal; Rs211 Million Economic Impact Estimated. The Federal Board of Revenue (FBR) has sealed a clandestine cigarette manufacturing unit operated by Hunter Tobacco SMC Pvt. Ltd. in Chakwal and seized approximately 12,600 kilograms of raw tobacco, along with cigarette-manufacturing materials, unstamped cigarettes and machinery. The overall economic impact of the enforcement action has been estimated at Rs211 million.
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The crackdown was carried out by teams of the FBR’s Intelligence & Investigation Directorate, Islamabad, in coordination with the Inland Revenue Enforcement Network, after receiving credible information about illicit cigarette manufacturing at the facility.
The FBR teams raided the premises of Hunter Tobacco SMC Pvt. Ltd., located near Dharabi on Kallar Kahar Road, District Chakwal. During the search, officials found the facility being used for clandestine cigarette manufacturing without the mandatory tax stamps required under Pakistan’s Track & Trace System.
The manufacturing unit had also not been integrated with the Track & Trace System, despite the system being mandatory for manufacturers operating in Pakistan’s tobacco sector.
12,600kg tobacco seized from Chakwal unit
The FBR operation resulted in the seizure of approximately 12,600kg of raw tobacco, which officials estimated was sufficient to manufacture around 630,000 packets of cigarettes.
Enforcement teams also seized filter rods, cigarette paper, aluminium foil, packaging material and other cigarette-manufacturing inputs from the premises.
The seized goods were transferred to a government warehouse, while the cigarette manufacturing premises were subsequently sealed by the FBR.
Rs90 million potential tax evasion identified
The FBR estimated that the seized raw tobacco could have resulted in approximately Rs90 million in potential tax evasion through the sale of cigarettes manufactured from the material.
The total economic impact of the operation has been estimated at Rs211 million, including the estimated duties and taxes that could have been evaded on stock found at the premises, as well as the value of machinery and other materials seized or sealed during the enforcement action.
The FBR said the manufacture and sale of cigarettes without payment of applicable duties and taxes, along with failure to comply with the Track & Trace System, constitutes a serious violation of tax laws.
The tax authority said it is taking strict enforcement measures against illicit cigarette manufacturing and tobacco-sector tax evasion to protect government revenue and legitimate businesses.
Criminal proceedings to follow investigation
The FBR said further legal action and criminal proceedings against individuals found to be involved in the illegal activity will be initiated after completion of the ongoing investigation, in accordance with the law.
The Board has also reaffirmed its commitment to intensifying action against illicit tobacco manufacturing and other forms of tax evasion, while ensuring a level playing field for compliant taxpayers and legitimate businesses.
