Illegal cigarette factory busted in Karachi, machinery worth Rs 200 million seized

The FBR sealed an illegal cigarette factory in Malir area of ​​Karachi. During the raid, various items including machinery, raw tobacco and finished cigarettes worth over Rs 200 million were seized.

According to the FBR, the operation was jointly carried out by the Inland Revenue Enforcement Squad, RTO Karachi and Inland Revenue Enforcement Network after receiving intelligence information.

In addition to cigarette making and packing machines, token and filter machines, heavy-duty generators and other equipment were also recovered from the factory. The total value of the seized machinery is estimated to be over Rs 200 million. About 700 kg of raw tobacco was also recovered during the operation.

According to the initial assessment of the authorities, the plant in the factory had the capacity to produce about 700,000 cigarettes per day. On this basis, about 200 million cigarette sticks could be produced here annually.

The FBR has estimated that the national exchequer was losing about Rs 1.2 billion in revenue annually due to the manufacture of illegal cigarettes.

After the operation, the factory was sealed and all machinery and stock were seized. The machinery was removed from the factory in compliance with legal requirements and shifted to the official premises of RTO-2 Karachi.

According to the FBR, an FIR has been registered against the involved persons in the court of Special Judge Customs and Taxation, Karachi and criminal proceedings have been initiated, while investigations into the illegal cigarette manufacturing are underway.

The operation was led by Deputy Commissioner Inland Revenue Baqir Ali, while Chief Commissioner RTO-2 Karachi Zafar Rafique supervised it. The coordination of the operation was done by Commissioner Inland Revenue and Regional Coordinator IREN for Sindh and Balochistan Dr. Aslam Marri.

The Regional Tax Office-2 Karachi has said that operations against illegal cigarette manufacturing, illegal tobacco trade and tax evasion will continue in the future.