FBR seals two sugar mills in central Punjab over tax violations

The Federal Board of Revenue (FBR) has sealed two sugar mills in central Punjab for serious violations of tax laws, reaffirming the government’s zero-tolerance policy against non-compliance.

In a press release issued on Monday, the FBR said the enforcement action was taken over breaches of Section 40C of the Sales Tax Act, 1990, read with relevant provisions of the Sales Tax Rules, which mandate monitoring, control, and compliance mechanisms for the sugar sector.

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The authority said the move reflects its resolve to ensure strict adherence to sales tax laws, particularly in high-risk sectors.

The FBR said all actions were carried out in accordance with due process and transparency to protect government revenue and maintain a level playing field for compliant taxpayers.

It added that while voluntary compliance remains a priority, strict enforcement will continue against willful violations of tax laws.