Pakistan continues to face serious challenges posed by illicit trade and unlawful activities in the tobacco sector. The unchecked movement, storage and use of non-duty-paid un-manufactured tobacco remain a major source of Federal Excise Duty evasion.

According to an official statement issued on Saturday, the prime minister has issued categorical directions to curb illicit practices in the tobacco and cigarette sector and ensure strict enforcement of tax laws across the supply chain. In line with these instructions, the FBR implemented a multi-layered enforcement strategy, under which the RTO Peshawar conducted an enforcement operation in District Mardan, seizing around 2.75 million kilograms of non-duty-paid un-manufactured tobacco from the godowns of M/s Khyber Tobacco Company. The estimated evaded duty on the seized goods is approximately Rs1.1 billion.