FBR to Monitor Sugar Mill Production with Video Surveillance
In an effort. to improve oversight of sugar mills, the Federal Board of Revenue (FBR) has decided to implement video surveillance systems to monitor production. This decision comes after the failure of the previous track and trace system. The new plan, outlined in S.R.O. 2082 (l) 2024, amends the Sales Tax Rules, 2006.
New Digital Eye Solution for Monitoring
With the installation of the digital eye solution, FBR officials, the Directorate of Intelligence, and the relevant local offices will be able to monitor and record production at sugar mills remotely through video surveillance. The system will allow real-time tracking of sugar production activities.
Overview of Pakistan’s Sugar Industry
Pakistan has 80 operational sugar mills that produce sugar for local consumption and export, along with by-products like molasses and ethanol. These mills play a vital role in the country’s economy by boosting foreign exchange reserves.
Current Monitoring Systems in Place
Currently, five systems are in place to monitor the production process:
- Track and Trace Stamps
- Automated Counters at Hoppers (to count produced bags)
- Video Recording and Digital Eye Counting
- Track Invoicing System (for all sugar dispatches)
- Staff Oversight (to supervise sugar production and sales)
Additionally, the Federal Investigation Agency (FIA) and Intelligence Bureau (IB) are involved in ensuring that these systems are functioning properly and that there is transparency in the sugar production process.
Improved Monitoring with Integrated CCTV
FBR personnel will be stationed at each sugar mill, overseeing the monitoring system. The video surveillance system will be backed by integrated CCTV cameras and frequent field visits by senior FBR officers. The Inland Revenue Enforcement Network will also conduct random checks to ensure compliance.
Moreover, the enforcement process will be supported by law enforcement agencies, including the Police and Pakistan Rangers, to provide additional assistance when necessary.
Future of Sugar Mill Monitoring
According to the new notification, all relevant goods will be monitored through video surveillance, digital analytics, and the digital eye system as soon as the FBR issues a specific order. This new system aims to improve the overall transparency, security, and accountability of sugar production in Pakistan.
