FBR seizes 2.5 million non-duty-paid cigarettes linked to PML-N politician’s factory

Raid near Khanewal uncovers tax evasion in brands registered under Sarhad Tobacco Company

In a major action targeting tax evasion in the tobacco sector, the Federal Board of Revenue’s (FBR) Directorate of Intelligence & Investigation Inland Revenue, Multan, has seized 2.5 million non-duty-paid cigarettes near Sham Kot Ada, close to the Khanewal Interchange.

According to official sources, the operation was carried out on a tip-off from the Intelligence Bureau (IB), as part of a wider government crackdown on illicit trade in the cigarette industry. The consignment, valued at approximately Rs20 million, was en route to Kunri, Sindh.

The seized brands, Boss and Canton, are registered under Sarhad Tobacco Company, Swabi. The company is reportedly owned by Sheeraz Akram Bacha, a senior Pakistan Muslim League-Nawaz (PML-N) leader from Khyber Pakhtunkhwa and a former provincial minister.

Investigators said the company operates on a toll manufacturing model, outsourcing production to other units. This practice, they noted, often complicates regulatory oversight and raises questions about tax compliance within the industry.

The operation was conducted under the broader directives issued by Prime Minister Shehbaz Sharif to clamp down on tax evasion in the tobacco sector. Officials confirmed that the Intelligence Bureau has been actively assisting the FBR in such enforcement efforts.

Further investigations are ongoing, and officials stated that similar actions will be taken against other entities involved in tax evasion, regardless of political affiliation or industry standing.

Ghulam Abbas
Ghulam Abbas
The writer is a member of the staff at the Islamabad Bureau. He can be reached at ghulam.abbas@pakistantoday.com.pk

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