Illicit Tobacco Trade Dealt "Biggest Blow" Peshawar

PESHAWAR:  A team from the Regional Tax Office (RTO) Peshawar, acting under the supervision of the Chief Commissioner, carried out the enforcement operation at the premises of a Tobacco Company in Mardan, on the night of 5 December 2025.

During the operation, the Tobacco Company was found covertly operating an undeclared plant and machinery used for the production of cut tobacco intended for illegal cigarette manufacturing.

According to officials, the company, which manufactures well-known cigarette brands including Cafe and Ranger, was found operating an additional, unreported production line used to prepare tobacco for illegal cigarette manufacturing.

According to an estimate, the seized machinery had the capacity to process between 6,000 and 7,000 kilograms of tobacco per day. If converted into cigarette production, the estimated revenue involved would amount to approximately Rs 45 million per day.

It is pertinent to note that the unit was already operating the declared machinery. However, the undeclared machinery was being used specifically for the preparation of tobacco for illicit cigarette production.

The operation was carried out by a team of RTO Peshawar led by Tariq Aziz, ADCIR, under due authorization from the concerned Commissioner. The machinery has been seized, and proceedings for its confiscation have been initiated along with the prosecution.

Acting on the Prime Minister’s directives to curb illegal cigarette trade, FBR, with full support from the Pakistan Army, has deployed 120 Pakistan Rangers personnel at GLT units nationwide and posted dedicated monitors under Section 40B of the Sales Tax Act, 1990, and Section 45 of the Federal Excise Act, 2005, to ensure lawful production and removal.