The Federal Board of Revenue (FBR) has sealed two sugar mills in central Punjab after detecting serious violations of tax laws, the authority said on Monday.
In a statement, the FBR said the action was taken for breaches of Section 40C of the Sales Tax Act, 1990, read with relevant provisions of the Sales Tax Rules, which require monitoring, control and compliance mechanisms in the sugar sector.
The authority said the enforcement drive reflects the government’s policy of zero tolerance towards non compliance, particularly in sectors considered high risk for revenue leakage.
According to the FBR, all enforcement actions were conducted in line with due process and transparency to safeguard government revenue and ensure a level playing field for compliant taxpayers.
It added that while the tax authority continues to encourage voluntary compliance, strict legal action will be pursued against willful violations of sales tax laws.
