FIA Investigates UTC for Tax Evasion in Mardan

Islamabad, August 5, 2025, 01:55 PM PKT — The Federal Investigation Agency (FIA) has unleashed a sweeping probe into Universal Tobacco Company (UTC), a Mardan-based cigarette manufacturer, over grave allegations of tax evasion, Federal Excise Duty (FED) fraud, and money laundering, as per news reports, signaling a major crackdown. Investigators suspect UTC of evading substantial federal taxes by underreporting production, manipulating sales data, and exploiting the Federal Board of Revenue’s (FBR) Track & Trace stamp system, designed to monitor cigarette production and sales. Initial findings hint at collusion with tax officials to bypass legal obligations, falsify records, and conceal true sales figures.

The FIA is scrutinizing discrepancies in UTC’s financial records over the past three years, including imported raw materials, suspicious transfers, and inconsistencies in income tax and FED filings, while reviewing key documents like production certifications, sales and excise records, tax filings, and distributor data for compliance with the Federal Excise Rules of 2005. The inquiry, led by the FIA’s Corporate Crime Circle in Islamabad under Enquiry No. 46/2025 and governed by the Federal Investigation Act of 1974, aims to uncover the full scope. Web context on similar cases reveals past regulatory failures, while posts found on X show public outrage and skepticism—some demand accountability, others question investigation depth. Critically, the narrative of “comprehensive probe” may mask systemic corruption—web data suggests widespread tax evasion, and X sentiment reflects distrust in official enforcement, pointing to deep-rooted issues.