In response to the misuse of the track-and-trace system, the Federal Board of Revenue (FBR) has decided to station Inland Revenue officials at all sugar mills in Punjab and Sindh. This move aims to closely monitor sugar production, sales, and clearance during the upcoming crushing season.

Prime Minister Shehbaz Sharif has mandated strict measures against sugar mill owners and dealers, including CCTV surveillance, to prevent hoarding and price manipulation. With the sugar crushing season set to commence on November 21, the Prime Minister has instructed the FBR, Federal Investigation Agency (FIA), and Intelligence Bureau (IB) to collaborate in taking decisive action against those involved in tax evasion, undocumented sales, and price hikes within the sugar sector.

Following the Prime Minister’s directives to intensify scrutiny of the sugar industry, a notification was issued directing the FBR, FIA, and IB to ensure the prevention of sales tax evasion. Inland Revenue Service (IRS) officers will be deployed to monitor the production, sale, and stock levels of all taxable goods under section 40B of the Sales Tax Act, 1990, at manufacturing and business premises.

Previously, the government relied on industry-reported statistics for sugar production. However, with the introduction of the track-and-trace system, the FBR now receives real-time data on sugar production from each mill. The installation of cameras will further ensure the monitoring of the production process and stockpiling of sugar, guaranteeing that GST payments are made and price hikes are controlled.