FIA Launches Probe Into Mardan-Based Tobacco Firm Over Alleged Tax Evasion and Financial Irregularities
The Federal Investigation Agency (FIA) has initiated a comprehensive investigation into Universal Tobacco Company (UTC), a cigarette manufacturer based in Mardan, over serious allegations involving tax evasion, Federal Excise Duty (FED) violations, and financial misconduct.
The inquiry is being led by the FIA’s Corporate Crime Circle in Islamabad, under Enquiry No. 46/2025, and is being carried out under the Federal Investigation Act of 1974.
Focus Areas of the Investigation
According to initial reports, UTC is suspected of:
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Underreporting production figures
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Manipulating sales data
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Misusing the FBR’s Track & Trace stamp system—a digital mechanism designed to monitor cigarette production and distribution
Authorities are also looking into the company’s financial transactions, imported raw material records, and compliance with excise regulations over the last three years.
Alleged Collusion and Compliance Issues
Investigators have raised concerns about possible collusion with tax officials, which may have enabled the company to bypass legal procedures. The FIA is examining discrepancies in:
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Production capacity certifications
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Excise duty and tax filings
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Daily production and clearance records
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Distributor and sales data
The agency is also reviewing compliance with the Federal Excise Rules, 2005, to identify any gaps or regulatory breaches.
Industry Context
Experts estimate that over 40% of Pakistan’s cigarette market remains outside the formal tax framework, with several manufacturers allegedly taking advantage of loopholes in enforcement. The current investigation is being seen as part of broader efforts to increase tax compliance and promote transparency in the tobacco sector.
The FIA’s ongoing inquiry highlights the government’s increasing focus on corporate accountability and the strengthening of fiscal oversight in key industries. More updates are expected as the investigation progresses.
