The Federal Board of Revenue (FBR) has reported a 54% increase in sales tax collection from the sugar sector over the past two months, driven by arrears recovery, tax reforms and higher sugar exports. However, despite the boost in tax revenue, sugar prices continue to rise, with consumers paying around Rs170 per kg in local markets.
According to Pakistan Bureau of Statistics (PBS) data, sugar exports in the first seven months of FY25 reached 757,597 tonnes, marking a 2,188% increase from 33,101 tonnes in the same period last year. Afghanistan remains the top export destination.
A senior tax official stated that Rs24 billion in sales tax was collected from the sugar sector in December and January, compared to Rs15 billion in the same period last year, despite similar sales volumes. This includes Rs2 billion recovered in arrears, with actual tax growth standing at 46% excluding arrears.
Since the 2024-25 sugarcane crushing season, the FBR has implemented an advanced production monitoring system for sugar mills, featuring track-and-trace stamps, automatic counters, and video recording.Â
On Tuesday, the finance minister disclosed that 10 sugar factories have been sealed for violating regulations, leading to a penalty collection of Rs125 million.
FBR officials, supported by the Federal Investigation Agency (FIA), Intelligence Bureau, and law enforcement agencies, have been stationed at sugar mills to prevent malpractice.Â
Aurangzeb stated that Pakistan will have 5.7 million tonnes of sugar, supplemented by carryover stock from the previous season, and expressed confidence that better management will help stabilize supply.
