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Islamabad

Mehtab Haider
December 17, 2016

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FBR finds illegal cigarette manufacturing unit in Buner

FBR finds illegal cigarette manufacturing unit in Buner

Islamabad

The Federal Board of Revenue (FBR) has found un-registered cigarette manufacturing unit in district Buner but investigations underway by the tax machinery showed that machines of this manufacturing unit have been allegedly purchased from formal players such as M/S Lakson Tobacco Co Pakistan and M/S Philip Morris.

“The FBR’s Intelligence and Investigation Inland Revenues (IR) is investigating that why formal players, who usually complain about smuggled cigarette, have sold out their machines to unregistered manufacturing unit located in Buner. We have not yet concluded our findings but interesting facts are expected to come on surface,” top official sources in the FBR confirmed while talking to The News here on Thursday.

According to detailed report sent out by the FBR’s Directorate of Intelligence and Investigation Peshawar about incident report regarding raid on un-registered cigarette manufacturing unit running in village Chinglery, district Buner, to Director General (DG) I&I, IR Islamabad, initial investigation revealed that a cigarette manufacturing unit is running under the supervision/control of Waheed Khan s/o Haider Zaman without getting federal excise registration and thus is involved in the evasion of federal excise duty.

In order to probe the matter, a team consisting of the staff was deputed to take necessary legal action under the Federal Excise Act 2005 and seize the goods manufactured in violation of the relevant provisions of the act besides action under rule 29 of the Federal Excise Rule 2005.

The FBR team raided the manufacturing premises on December 9, 2016 but the manufacturing facility was found closed. A man was found having alighted fire in far off comer of the closed premises but despite repeated calls and shouts he gave no response to open the main gate. 

No other person in or around the factory premises was found. The team returned and decided to visit the premises under Section 25 /26 read with Rule 62/63 of the Federal Excise Act, 2005 again on Saturday, December 10, 2016 and reported that the factory was found opened, four cigarette making machines and one each packing wrapping and bundling machine were found being installed or were under the process of installation.

The examination of these machines revealed that the machines have been purchased from M/S Philip Morris (Pakistan) Ltd and M/S Lakson Tobacco Co Pakistan. Search of the manufacturing premises revealed that one making machine was run on trial basis but was found non-operational on the visit day. Some residuals of trial production were found but no raw material or finished stock either of tobacco or cigarette material was found which means that machinery was not fully installed and was probably under the process of installation. 

The owner Waheed Khan was interviewed who was even un-aware regarding the name of their factory and the brands of cigarettes to be manufactured, which leads to their hidden motives of acting like a facilitator for concealed manufacturer for other local cigarette manufacturers or M/s Philip Morris Pakistan Ltd. 

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