Monitoring of Sugar Mills by FBR with Officials Begins with Sugar Crushing Season
To address tax evasion and price manipulation issues in the sugar industry, the FBR posts Inland Revenue officers at sugar mills in Punjab and Sindh, because this will enable it to monitor production, sales, and clearance of sugar during the upcoming crushing season.
Prime Minister Shehbaz Sharif has also instructed the FBR to take strict action against sugar mill owners and dealers. This shall be backed by CCTV monitoring to curb hoarding and check price rises. The crushing season is going to begin from November 21, and the PM has directed the FBR to collaborate with the FIA and IB to crack down on the mills and dealers who indulge in illegal activities such as tax evasion and price rise.
One more government notification has been issued which would make a joint effort towards sugar industry to decrease evasions of sales tax. IRS officers will be posted at the sugar mills to track their sugar productions, sales, and stocks. It is based on section 40B of the Sales Tax Act, 1990.
Earlier, the government prepared estimates of sugar production by using data from the industry. With the new track-and-trace system, however, the FBR directly receives the real-time update of each mill’s sugar output. The cameras oversee the production process and monitor sugar stock, ensuring that the right amount of GST has been paid and sudden price spikes don’t happen.
