ISLAMABAD: The Federal Board of Revenue (FBR) on Sunday sealed an illegal cigarette manufacturing facility in Malir area of Karachi and confiscated plant, machinery and tobacco worth around Rs200 million, causing an estimated annual revenue loss of Rs1.2 billion to the national exchequer.
The enforcement operation was conducted by the Inland Revenue Enforcement Squad of Regional Tax Office-II (RTO-II), in pursuance of the directions of the Prime Minister, Chairman FBR and Director General Intelligence and Investigation/Chief Coordinator IREN to curb illegal cigarette manufacturing and illicit tobacco trade, said a news release.
The enforcement team of the Inland Revenue Enforcement Squad, RTO-II Karachi / Inland Revenue Enforcement Network (IREN) raided an illegal cigarette manufacturing factory located in the Malir area of Karachi.
During the operation, the factory was immediately sealed, while its plant and machinery, along with raw and finished stock, were confiscated.
The confiscated machinery included cigarette-making machines, packing machines, token machines, filter machines, heavy-duty generators and other associated equipment valuing at Rs. 200 Million approximately. Around 700 kg of raw tobacco was also found at the premises.
Preliminary assessment revealed that the installed plant and machinery had a production capacity of approximately 700,000 cigarette sticks per day, translating into an estimated annual production capacity of around 200 million cigarette sticks.
The illegal manufacturing activity was consequently causing an estimated revenue loss of approximately Rs. 1.2 billion annually to the national exchequer.
The Enforcement Squad took prompt action by sealing the premises and confiscating the entire plant, machinery and stock. Criminal proceedings were subsequently initiated through registration of an FIR against the persons involved before the learned Special Judge (Customs & Taxation), Karachi.
Following the confiscation, the entire plant and machinery installed at the factory premises were dismantled and shifted, along with the confiscated raw and finished stock, to the official premises of RTO-II, Karachi, in accordance with the prescribed legal procedure.
The operation was conducted by an enforcement team headed by Baqir Ali, DCIR, and coordinated by Dr. Aslam Marri, Commissioner Inland Revenue, RTO-II Karachi / Regional Coordinator IREN Sindh and Balochistan, under the supervision of Zafar Rafique, Chief Commissioner, RTO-II Karachi.
Criminal investigation into the illegal manufacturing operation and the persons involved is currently underway.
The RTO-II, Karachi, reaffirmed its commitment to taking strict and sustained enforcement action against illegal cigarette manufacturing, illicit tobacco trade and tax evasion, in order to safeguard Government revenue and ensure compliance with the applicable tax laws.
