Two people were arrested in Swabi, Pakistan, after a raid by the Federal Board of Revenue over the alleged unlawful removal of tobacco manufacturing machinery, in a case that has drawn competing claims from authorities and industry representatives. Officials from RTO Peshawar say the action was taken under the Federal Excise Act, 2005, which requires prior excise approval before any cigarette production equipment is relocated, due to the risk that machinery could be used for untaxed manufacturing. An FIR was lodged following the raid, and two “owners,” along with an excise manager, were detained.
The company disputes the allegations, saying the machinery was surplus equipment legally sold on March 19 to a registered buyer, with Rs1.8 million ($6,480) paid in sales tax, and those arrested were employees, not owners. Management argues that the transaction complied with applicable rules and that excise officials acted unjustly, causing reputational harm. Industry figure Iqbal Khan Shewa also criticized the arrests, suggesting the action could negatively affect tobacco growers and associated livelihoods, while authorities maintain the case centers on procedural excise violations rather than the commercial sale itself.
