Islamabad 5 August: The Federal Investigation Agency (FIA) has launched a comprehensive investigation into Universal Tobacco Company (UTC), a Mardan-based cigarette manufacturer, over allegations of significant tax evasion, Federal Excise Duty (FED) fraud, and money laundering.
According to news reports the probe, initiated by the FIA’s Corporate Crime Circle in Islamabad under Enquiry No. 46/2025, is being conducted under the Federal Investigation Act of 1974.
Investigators suspect UTC evaded substantial federal taxes by underreporting production, manipulating sales data, and misusing the Federal Board of Revenue’s (FBR) Track & Trace stamp system, designed to monitor cigarette production and sales. Initial findings suggest possible collusion with tax officials to bypass legal requirements and falsify records, obscuring actual sales volumes. The FIA is collecting critical documents, including production capacity certifications, sales and excise duty records, tax filings, distributor data, and compliance evidence under the Federal Excise Rules, 2005.
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The investigation follows reports that over 40 percent of Pakistan’s cigarette market operates outside the formal tax net, exploiting regulatory loopholes. This probe comes amid broader scrutiny of the tobacco industry, with experts estimating significant revenue losses due to such practices. The FIA’s efforts aim to curb systemic tax evasion and ensure compliance with national regulations, with potential implications for the tobacco sector’s oversight.
