FIA investigates Universal Tobacco Company over tax evasion and fraud

The Federal Investigation Agency (FIA) has launched a comprehensive investigation into Universal Tobacco Company (UTC), a cigarette manufacturer based in Mardan, over allegations of tax evasion, Federal Excise Duty (FED) fraud, and money laundering. 

According to news reports, investigators suspect UTC of evading substantial federal taxes by underreporting production, manipulating sales data, and exploiting the FBR’s Track & Trace stamp system, which monitors cigarette production and sales. 

Initial findings suggest UTC may have colluded with tax officials to bypass legal obligations, falsify records, and conceal actual sales figures.

The investigation is also focused on possible discrepancies in the company’s financial records, including imported raw materials, suspicious financial transfers, and inconsistencies in income tax and FED filings over the past three years. 

The FIA is reviewing key documents, such as production capacity certifications, sales and excise duty records, tax filings, and distributor data, to assess compliance with the Federal Excise Rules of 2005.

The inquiry, initiated by the FIA’s Corporate Crime Circle in Islamabad, is being carried out under Enquiry No. 46/2025 and is governed by the Federal Investigation Act of 1974.