The Federal Board of Revenue (FBR) has launched a new initiative to monitor sugar mill production through digital surveillance, replacing the previous track-and-trace system. The move is part of broader efforts to curb tax evasion and ensure transparency in the sugar sector.
According to a notification issued under S.R.O. 2082 (I)2024, the FBR will implement video surveillance and a “digital eye solution” at all 80 operational sugar mills nationwide. This system will allow the FBR, Directorate of Intelligence, and relevant tax offices to monitor production in real time.
The comprehensive oversight framework includes five monitoring mechanisms: track-and-trace stamps, automated bag counters at hoppers, video recording, digital eye analytics, and track invoicing systems.
Additionally, Inland Revenue officers will be stationed at mills to oversee operations, supported by CCTV surveillance and random checks by the Inland Revenue Enforcement Network.
The FBR is also receiving assistance from the Federal Investigation Agency (FIA), Intelligence Bureau (IB), police, and Pakistan Rangers to enforce compliance and prevent evasion. Senior officials will conduct frequent inspections to ensure the system’s efficacy.
The sugar industry has been under scrutiny following allegations of tax evasion and unaccounted production. Recent actions include the closure of mills in Sindh and Punjab for violating regulations.
Despite the installation of previous systems, loopholes such as fake track-and-trace stamps and undocumented dispatches persisted.
The FBR’s latest measures aim to address these gaps. As sugar mills ramp up production during the November-March crushing season, the government seeks to ensure accurate tax collection, prevent price manipulation, and stabilize the market.
In a related development, Minister for Planning Ahsan Iqbal directed the development of a medium-term framework for deregulating sugar industry, stressing industries to ensure data uniformity, crop zoning and backward integration.
