Editor Report
Islamabad:The Federal Investigation Agency (FIA) has launched a wide-ranging investigation into Universal Tobacco Company (UTC), a Mardan-based cigarette manufacturer, over allegations of massive tax evasion, Federal Excise Duty (FED) fraud, and money laundering.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 believe UTC may have evaded large sums in federal taxes through underreporting production, manipulating sales data, and misusing FBR’s Track & Trace stamp system, which is designed to monitor and control the production and sale of cigarettes.Initial findings allege that UTC engaged in collusion with tax officials to bypass legal requirements, falsify production records, and obscure actual sales volumes. Authorities are also examining possible irregularities in imported raw materials, suspicious financial transfers, and discrepancies in the company’s income tax and FED return filings over the past three years.As part of the investigation, the FIA is gathering key documents including production capacity certifications, Sales and excise duty records, tax filings, distributor data, daily production and clearance registers, and evidence of compliance with the Federal Excise Rules, 2005.Experts estimate that more than 40 percent of Pakistan’s cigarette market operates outside the formal tax net, exploiting loopholes in enforcement and regulatory systems.
