FBR deploys officers to monitor sugar mills during crushing season

ISLAMABAD: The Federal Board of Revenue (FBR) has decided to station Inland Revenue (IR) officers at all sugar mills nationwide during the upcoming sugarcane crushing season. Their role will be to monitor production, sales as well as stock levels in real-time.

This move is part of the FBR’s efforts to ensure transparency in the sugar industry. Lists of sugar mills have been shared with Large Taxpayer Offices (LTOs), and officers will be deployed under section 40B of the Sales Tax Act, 1990.

The crushing season, running from November to March, was previously reliant on the industry’s own data. However, with the introduction of the Track and Trace system, FBR now has access to real-time figures from each mill.

The FBR has outlined that officials will track the number of trolleys entering each mill and the daily amount of sugarcane processed. Production, sales, as well as storage data will also be closely monitored with reports submitted daily to the FBR.

Prime Minister Shehbaz Sharif has also instructed authorities to take action against sugar mills and dealers involved in tax evasion and illegal practices.

According to Business Recorder, a joint task force of FBR, FIA, and IB will work together to prevent sales tax fraud and price manipulation. CCTV cameras will be installed to monitor production and prevent stockpiling.

In a separate case, the Directorate General of Intelligence and Investigation of Inland Revenue has arrested several individuals linked to a significant tax fraud scheme.

The scam detected in March involved the illegal use of dormant accounts to claim fake tax inputs causing major losses to the exchequer. The investigation is underway with further arrests expected.

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