Pakistan’s Federal Investigation Agency (FIA) is conducting a detailed investigation into Universal Tobacco Company (UTC), based in Mardan, over serious allegations of Federal Excise Duty (FED) fraud, tax evasion, and money laundering. The inquiry—led by the FIA’s Corporate Crime Circle under Enquiry No. 46/2025—examines suspected underreporting of production, manipulated sales records, misuse of the FBR’s Track & Trace stamp system, and possible collusion with tax officials.

Authorities are reviewing income tax returns, excise duty filings, production data, and raw material import documents covering the past three years.The case highlights systemic vulnerabilities in Pakistan’s tobacco regulatory environment, where an estimated 40% of the cigarette market operates outside formal taxation, undermining authorities’ efforts. FIA officials are seeking to strengthen oversight, expose collusion, and recover substantial evaded revenues.

federal excise duty fraud, tobacco industry probe, FIA tax investigation