FBR cracks down on seven sugar mills

June 19, 2025 (MLN): The Federal Board of Revenue (FBR) has launched enforcement action against seven sugar mills over alleged tax evasion and non-compliance with the Track and Trace System (TTS), intensifying regulatory scrutiny on a sector long plagued by governance concerns.

FBR Chairman Rashid Langrial briefed the National Assembly Standing Committee on Finance on Wednesday, revealing that raids had uncovered concealed operations, missing surveillance systems, and unauthorized sugar dispatches at multiple mills.

At Sarkand Sugar Mill, officials discovered a hidden chute used to divert unrecorded sugar output. Authorities sealed the bypass mechanism and seized 1,200 metric tons of undeclared stock.

Chamber Sugar Mill was found to have disconnected its production lines from the digital monitoring grid. As a result, the FBR impounded 150 metric tons of unregistered sugar and seized five transport vehicles.

Digri Sugar Mill was completely sealed after failing to present the mandatory surveillance feed—considered a critical component of TTS compliance.

In another case, Jauharabad Sugar Mill was allegedly dispatching sugar without affixing the required TTS stamps. The storage area was sealed, and a comprehensive stock audit was launched.

At Tandlianwala Sugar Mill, enforcement teams flagged surveillance lapses, including non-functional CCTV systems and defective automated bagging equipment, or “shooters.” The weighbridge and the faulty shooter were sealed.

Almoiz Industries Unit-2 reportedly diverted shipments outside the TTS-monitored supply chain. The FBR responded by sealing the entire bagging zone.

Similarly, Tariq Corporation in Jaranwala faced enforcement for irregularities in shooter system data and inconsistencies in bag counts.

Chairman Langrial told the committee that such violations were undermining revenue collection efforts and emphasized that enforcement would continue.

Opposition Leader Omar Ayub, representing PTI, pressed for transparency, urging the FBR to disclose the names of the mills involved. The Chairman complied, sharing the list with committee members.

This enforcement drive followed Prime Minister Shehbaz Sharif’s recent approval of a large-scale crackdown aimed at curbing artificial hikes in sugar prices, according to sources.

The premier has reportedly granted sweeping powers to key institutions, including the FIA, IB, ISI, FBR, and the State Bank of Pakistan, to pursue actions without restriction.

He has also directed authorities to initiate strict legal proceedings against individuals or entities involved in hoarding, price manipulation, and cartelization.

The move signalled the government’s renewed commitment to regulatory enforcement and digital compliance, especially in high-risk sectors with long-standing informal practices.

Copyright Mettis Link News