ISLAMABAD, Pakistan: The Islamabad High Court (IHC) has directed the Federal Board of Revenue (FBR) to immediately de-seal 26 cigarette factories that were shut down as part of a crackdown on alleged illegal tobacco production.
The court’s ruling came after factory owners challenged the FBR’s aggressive enforcement drive, arguing that the closures were unjustified and lacked proper legal grounds. The petitioners claimed that several of the targeted factories were lawfully registered and tax-compliant, yet suffered heavy losses due to the abrupt sealing orders.
Justice at the IHC observed that while efforts to curb the illegal tobacco trade are necessary to safeguard revenue and public health, enforcement actions must strictly adhere to due process and transparency. The court emphasized that lawful businesses cannot be penalized without solid evidence and ordered the temporary suspension of the sealing orders until the matter is fully investigated.
The case highlights a growing conflict between the government’s efforts to combat illicit tobacco trade—a sector that causes significant tax losses—and the need to ensure that enforcement measures do not unfairly disrupt legitimate businesses.
Legal and industry experts have urged the FBR to streamline its regulatory framework, warning that hasty and poorly executed crackdowns could damage investor confidence and hinder efforts to formalize the sector.
This story has been reported by PakTribune. All rights reserved.