In a major enforcement action against illicit cigarette manufacturing, the Regional Tax Office (RTO) Peshawar uncovered an alleged illegal cigarette manufacturing unit operating from the premises of a school in District Swabi.
Acting on credible intelligence, the Peshawar Mobile Squads (Tobacco) of the Federal Board of Revenue (FBR) conducted a raid on Universal School, which was operating alongside Afaq Marriage Hall at Mansabdar, Tehsil Razar, District Swabi. The operation was carried out on July 28, 2026, under the supervision of Assistant Commissioner (IR) officials.
According to the official seizure memo, the premises were found to be functioning as an undeclared (ghost) cigarette manufacturing unit in violation of the Federal Excise laws. During the raid, Afaq Amin, identified in the official record as the owner/operator of the premises and director of the school, was also present at the site.
The enforcement team sealed the facility and confiscated a complete cigarette manufacturing setup, including a cigarette making machine valued at approximately Rs50 million, a cigarette-packing machine worth Rs20 million, a bundle-making machine, two cellophane wrapping machines, and a compressor. The total estimated value of the seized machinery exceeds Rs71 million.
Officials also recovered a substantial quantity of raw materials and counterfeit packaging used in the production of illegal cigarettes. These included approximately 1,000 kilograms of cut tobacco, glue drums, counterfeit Federal Excise tax stamps, dies of counterfeit cigarette brands, and counterfeit cigarette sticks and packets, including those resembling well-known brands.
The seizure report states that the unit was found involved in the production of counterfeit cigarettes and that evidence was collected from inside the factory and adjoining premises. The entire facility was sealed, and the machinery and recovered materials were taken into official custody.
The action reflects the government’s continuing zero-tolerance policy against tax evasion, counterfeit manufacturing, and the illegal cigarette trade. Authorities have intensified enforcement operations across the country to dismantle illicit tobacco manufacturing networks that deprive the national exchequer of billions of rupees in revenue while undermining legitimate businesses.
Officials reiterated that strict legal action will continue against individuals and entities involved in illegal cigarette production and tax evasion, warning that no one involved in such activities will be spared regardless of the location or cover under which such operations are conducted.
