The Federal Board of Revenue (FBR) has seized a large consignment of non-duty-paid unmanufactured tobacco in District Mardan, blocking a potential revenue loss of nearly Rs19 billion, officials confirmed.
Acting through the Regional Tax Office (RTO) Peshawar, the FBR carried out the operation under the prime minister’s directives and as part of its nationwide enforcement plan.
During the operation, officials recovered around 2.75 million kilograms of unmanufactured tobacco from godowns belonging to M/s Khyber Tobacco Company. Authorities identified the seized material as non-duty-paid, making it illegal under federal tax laws.
Unmanufactured tobacco serves as the primary raw material for cigarette production. Investigators estimate that the evaded Federal Excise Duty on the seized stock amounts to approximately Rs 1.1 billion.
Regional Tax Office #RTOPeshawar has carried out a landmark enforcement action against illicit tobacco in District #Mardan, seizing approx. 2.75 million kg of non-duty-paid raw #tobacco with a potential revenue implication of Rs. 19 billion. 1/6 #AntiSmuggling #IllegalTrade pic.twitter.com/md3hkz9oDG
— FBR (@FBRSpokesperson) December 13, 2025M/s Khyber Tobacco Company manufactures cigarette brands including Kissan and Gold Street Classic, according to official records. After completing all required legal formalities and securing approvals, RTO Peshawar officers sealed the godowns on December 12, 2025.
Assistant Commissioner, Inland Revenue, Shehroz Rashid Ahmad Khan, led the operation under the supervision of the Chief Commissioner, Inland Revenue, RTO Peshawar.
Authorities have also initiated further proceedings under Sections 21, 22, 19(3), 19(10), and 27 of the Federal Excise Act, 2005. These actions include sealing and, where appropriate, confiscating machinery used in the production of illegal tobacco and cigarettes.
Preliminary assessments indicate that if the seized tobacco had entered the cigarette production process, it could have led to tax evasion of Rs 19 billion. Officials said the timely seizure prevented major revenue leakage and disrupted a key source of illicit cigarette manufacturing.
