Islamabad: In a move to curb tax evasion, hoarding and price gouging, 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. The measure comes after reports of misuse of the track and trace system. , which is now used to collect real-time data on sugar production.
Prime Minister Shehbaz Sharif issued directions for strict supervision of the sugar sector and ordered the implementation of CCTV surveillance in mills to prevent illegal activities. The government is also set to deploy officials from the FBR, Federal Investigation Agency (FIA), and Intelligence Bureau (IB) to target sugar mills and traders involved in tax evasion, undocumented sales, and unjustified price hikes.
A notification has been issued to ensure effective monitoring of sugar production, sales and inventory levels under Section 40B of the Sales Tax Act, 1990. FBR officials will be stationed at sugar mills to keep track of production, sales and inventory situations, thereby ensuring that all sales tax liabilities are met.
Previously, the government relied on data provided by industry 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 monitoring. Cameras installed in the mills will also monitor the production and storage process, ensuring compliance with tax regulations and preventing price manipulation during the upcoming season.