The Federal Board of Revenue (FBR) has sealed the manufacturing units of M/s Indus Tobacco Company and M/s Souvenir Tobacco Company in District Mardan on allegations of producing non-duty-paid and moving non–track-and-trace–stamp (TTS) cigarettes under Rule 28A(6) of the Federal Excise Rules, 2005.
According to details, the FBR has developed a comprehensive, multi-layered enforcement plan aimed at eliminating non-duty-paid cigarette production, strengthening monitoring mechanisms, and disrupting illegal supply chains.
The Directorate of Intelligence and Investigation–IR Peshawar, after securing a warrant from the area magistrate, conducted a raid on an undeclared godown in the jurisdiction of Jabbar Police Station, District Mardan, on November 3, 2025. During the search, 200 cartons of non-duty-paid and non-TTS cigarettes of brands Business Class, Red and Crown were recovered. These brands are registered products of M/s Indus Tobacco Company (Pvt) Ltd.
The Directorate of I&I-IR Peshawar subsequently forwarded a contravention report on November 21, 2025, to the Regional Tax Office (RTO) Peshawar. Following completion of codal formalities and necessary approvals, the manufacturing machinery of M/s Indus Tobacco Company was sealed on November 29, 2025, under Rule 28A(6) of the Federal Excise Rules, 2005, by officers of RTO Peshawar. The operation was carried out by DC (IR) Arsalan Ali under the supervision of the Chief Commissioner, RTO Peshawar. Further proceedings under Sections 21, 22, 19(3), 19(10) and 27 of the Federal Excise Act, 2005, are in progress.
During and after the search operation, officers and officials of I&I-IR Peshawar faced resistance from armed personnel, including the director/owner of the company. One of the directors, who resisted the lawful proceedings with firearms, is related to a prominent political family from District Mardan.
Despite armed pressure, both I&I-IR and the RTO Peshawar enforcement team successfully completed the action without yielding to any influence, underscoring FBR’s resolve to uphold the law and protect national revenue.Â
A similar action was taken against another prominent manufacturer, M/s Souvenir Tobacco Company on November 29, 2025 which was found involved in manufacturing and removal of non-duty paid/non-TTS cigarettes. Machinery of the said company was also sealed.
As part of the coordinated strategy, approximately 120 Pakistan Rangers personnel have been deployed at Green Leaf Threshing (GLT) units nationwide to assist in monitoring and securing premises against illicit manufacturing activities.
Simultaneously, the FBR has posted more than 200 dedicated monitors under Section 40B of the Sales Tax Act, 1990, and Section 45 of the Federal Excise Act, 2005, to oversee production, ensure lawful removal of goods, and verify tax compliance at manufacturing facilities.
