FBR's RTO-II Karachi busts illegal cigarette factory, seizes Rs200m machinery

According to Mettis Global, tax enforcers in Karachi have dismantled an illegal cigarette production unit in the Malir area. The operation, run by FBR's Regional Tax Office-II, ended with the facility sealed and its equipment and stock taken away, a haul put at roughly Rs200mn. The step forms part of a broader drive against the illicit tobacco trade, and it was directed by the prime minister, the FBR chairman and the Director General of Intelligence & Investigation.

Seized items include cigarette-making, packing, token and filter machines, heavy-duty generators and about 700kg of raw tobacco. A preliminary assessment indicates the plant could output roughly 700,000 sticks a day, close to 200mn a year, and estimates an annual loss of Rs1.2bn in evaded taxes. After the seizure, an FIR was lodged before the Special Judge (Customs & Taxation) in Karachi, and the goods were moved to RTO-II's premises.

The inquiry, led by DCIR Baqir Ali, is still under way, with Commissioner Inland Revenue Dr Aslam Marri coordinating the operation and Chief Commissioner Zafar Rafique supervising it. A criminal investigation remains ongoing. RTO-II has pledged to maintain firm action against unlawful cigarette output, smuggling of tobacco and tax evasion, in order to protect public revenue.