FBR seals two sugar mills on agency’s report

ISLAMABAD: Following a report of an intelligence agency, the Federal Board of Revenue (FBR) has sealed two sugar mills located in Central Punjab for serious breaches of statutory provisions.

Taking action on the same report of the intelligence agency, the FBR had suspended six Inland Revenue officials, deputed at the mills.

The enforcement action was taken following violations of Section 40C of the Sales Tax Act, 1990, read with Chapter XIV-B and Chapter XIV-BA, as well as Rule 150 ZQZE of the Sales Tax Rules, 2006, which prescribe mandatory monitoring, control, and compliance mechanisms for the sugar sector, FBR said.

Prime Minister Shehbaz Sharif had directed Federal Board of Revenue (FBR), Federal Investigation Agency (FIA) and Intelligence Bureau (IB) to take joint action against sugar mills and dealers involved in tax evasion, undocumented sales, and price hikes in sugar sector.

Following the directives by the prime minister to tighten the noose around the sugar mafias, a notification was issued directing FBR, FIA and IB to ensure prevention of sales tax evasion in sugar industry.

Shehbaz Sharif has already ordered strict action against sugar mill owners and dealers along with CCTV surveillance to prevent hoarding and price manipulation.

Prime Minister reportedly said that the cameras will monitor the production process and stockpiling of sugar, ensuring GST payments are made and price hikes are prevented.

This action underscores FBR’s firm resolve to ensure strict adherence to sales tax laws, particularly in high-risk sectors, and to take decisive measures against taxpayers involved in persistent non-compliance, FBR said.

The FBR has reaffirmed that all enforcement actions are being carried out strictly in accordance with the law, ensuring due process and transparency, with the objective of safeguarding government revenue and maintaining a level playing field for compliant taxpayers.

The Board further reiterated its commitment to encouraging voluntary compliance, while continuing strict enforcement against willful non-compliance and violations of tax laws.

In line with the Government’s zero-tolerance policy against violations of tax laws, the FBR has taken the said action.

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