FBR seals two chutes at Safina Sugar Mills

January 05, 2026 (MLN): The Federal Board of Revenue (FBR) sealed two production chutes at Safina Sugar Mills in Laliyan, Chiniot district, after the mill failed to install mandatory digital eye cameras and network video recorder (NVR) systems.

The equipment is a key requirement under Pakistan’s sales tax track and trace rules.

The sealing action was taken during on-site monitoring as part of the ongoing sugarcane crushing season 2025–26.

The absence of digital monitoring equipment on the chutes was found to be in violation of the Sales Tax Rules, prompting enforcement staff to suspend operations at the affected points until compliance is ensured.

The move is part of a broader enforcement drive aimed at curbing tax evasion and underreporting in the sugar sector, a historically high-risk industry for revenue leakage.

Under the current monitoring framework, sugar mills are required to operate multiple oversight mechanisms, including track and trace stamps, automated bag counters, video surveillance, digital eye systems, and S-Track invoicing for sugar dispatches, according to the press release.

FBR has deployed its personnel at sugar mills across the country, with integrated CCTV monitoring, periodic inspections by senior tax officials, and random field checks conducted by the Inland Revenue Enforcement Network (IREN).

The enforcement teams are also monitoring downstream supply chains to verify that sugar is being sold to registered distributors rather than diverted to hoarders, a practice that can distort market supply and prices.

Strick monitoring will continue even after the crushing season ends to ensure recovery of due taxes and uninterrupted sugar supply to consumers.

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