The Federal Investigation Agency (FIA) has opened a sweeping investigation into Universal Tobacco Company (UTC), a Mardan-based cigarette manufacturer, over serious allegations of tax evasion, Federal Excise Duty (FED) fraud, and money laundering.

Investigation Details:
Initiated by FIA’s Corporate Crime Circle under Enquiry No. 46/2025, the probe is being conducted under the Federal Investigation Act of 1974. Authorities suspect UTC of:

• Underreporting cigarette production
• Manipulating sales data
• Abusing FBR’s Track & Trace stamp system

Alleged Collusion & Misconduct:
Initial findings suggest UTC may have colluded with tax officials to falsify records and conceal sales volumes. The FIA is scrutinizing irregularities related to:

• Imported raw materials
• Suspicious financial transfers
• Income tax and FED filings from the past three years

Documents Under Review:
The investigation includes analysis of key records such as production capacity certifications, excise duty filings, distributor data, daily clearance registers, and compliance history with Federal Excise Rules, 2005.

Industry Context:
Experts estimate over 40% of Pakistan’s cigarette trade lies outside the formal tax net, raising concerns about enforcement gaps and regulatory loopholes.