FBR seizes 2.75 million kg of non-duty-paid tobacco in Mardan, preventing revenue loss of Rs 19 billion, officials say.
The Federal Board of Revenue (FBR seizes) a massive quantity of unmanufactured tobacco from M/s Khyber Tobacco Company godowns in District Mardan. The operation, carried out by the Regional Tax Office (RTO) Peshawar, was in line with the prime minister’s directions and FBR’s enforcement plan. Officials confirmed the seizure of approximately 2.75 million kilograms of non-duty-paid tobacco, the main raw material for cigarette production.
According to authorities, the evaded Federal Excise Duty on the seized tobacco is estimated at Rs 1.1 billion. Had this raw material been converted into cigarettes, it could have caused a potential revenue loss of around Rs 19 billion to the national exchequer. The RTO Peshawar sealed the godowns on December 12, 2025, after completing all codal formalities and obtaining necessary approvals.
The operation was supervised by the Chief Commissioner Inland Revenue, with Assistant Commissioner Inland Revenue Shehroz Rashid Ahmad Khan leading the enforcement activities. Machinery used for processing non-duty-paid tobacco was also confiscated, and further proceedings under relevant sections of the Federal Excise Act, 2005, are underway.
Officials emphasized that Pakistan faces significant challenges due to illicit trade in the tobacco sector, which results in substantial revenue losses. The unchecked use of non-duty-paid tobacco facilitates large-scale evasion of taxes and damages the economy.
In line with the prime minister’s directives, the FBR seizes illegal tobacco to strengthen tax enforcement, disrupt illicit networks, and prevent unlawful cigarette production. The comprehensive strategy includes intelligence-based monitoring and strict supervision across the tobacco supply chain to protect public revenue.
This seizure demonstrates the FBR’s ongoing commitment to combat tax evasion and illegal trade, ensuring lawful operations in Pakistan’s tobacco industry while safeguarding the national exchequer.
The recovered tobacco is now under legal custody, and authorities continue to monitor similar operations nationwide.
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