In a move to curb tax evasion, hoarding, and price manipulation, the Federal Board of Revenue (FBR) has decided to deploy Inland Revenue officials at all sugar mills in Punjab and Sindh ahead of the sugar crushing season, which begins on November 21.
This action comes after reports of misuse of the track-and-trace system, which is now used to gather real-time data on sugar production.
Prime Minister Shehbaz Sharif has issued directives for strict monitoring of the sugar sector, ordering that CCTV surveillance be implemented at mills to prevent illegal activities. The government is also set to deploy officials from FBR, the Federal Investigation Agency (FIA), and the Intelligence Bureau (IB) to jointly target sugar mills and dealers involved in tax evasion, undocumented sales, and unjustified price hikes.
A notification has been issued to ensure the effective monitoring of sugar production, sales, and stock levels under section 40B of the Sales Tax Act, 1990. FBR officials will be stationed at sugar mills to track production, sales, and stock positions, ensuring that all sales tax obligations are met.
Previously, the government relied on industry-provided data for sugar production figures, but with the new track-and-trace system, the FBR now has access to real-time production data, enabling more accurate and effective oversight. Cameras installed at the mills will also monitor the production process and stockpiling, further ensuring compliance with tax regulations and preventing price manipulation during the upcoming season.
