The FBR (FBR) recorded an increase of 54 % in collecting sales tax from the sugar sector during the past two months, driven by the recovery of arrears, tax reforms and increased sugar exports. However, despite the increase in tax revenues, the price of sugar continues to rise, as consumers pay about 170 rupees per kilogram in local markets.
According to the data of the Pakistani Statistical Office (PBS), sugar exports in the first seven months of the fiscal year reached 25 757,597 tons, which represents an increase of 2,188 % of 33,101 tons in the same period last year. Afghanistan is still the first destination for export.
A senior tax official stated that 24 billion rupees of sales tax were collected from the sugar sector in December and January, compared to 15 billion rupees in the same period last year, despite similar sales volumes. This includes the recovery of 2 billion rupees in arrears, with actual taxes growing by 46 % except for arrears.
Since the sugar cane crushing season 2024-25, FBR has implemented the advanced production monitoring system for sugar from sugar, which includes follow-up stamps, automatic meters, and video recording.
On Tuesday, the Minister of Finance revealed that 10 sugar factories had been closed for violating the regulations, which led to a group of 125 million rupees.
FBR officials, with the support of the FBI, the Intelligence Office, and the law enforcement agencies, are concentrated in sugar mills to prevent misuse.
Aurangzeb stated that Pakistan will get 5.7 million tons of sugar, and are completed by transfer shares from the previous season, and expressed confidence that the best management will help stabilize the offer.
