The Federal Board of Revenue (FBR) has dispatched monitoring teams to sugar mills with the aim of preventing tax evasion.
In a significant development, the Federal Board of Revenue (FBR) has launched a concerted effort to combat tax evasion within the sugar industry. According to an official press release issued on Wednesday, the FBR has taken proactive measures by deploying monitoring teams to sugar mills across the country.
Sugar, classified as a notified product, is now under strict scrutiny, with comprehensive monitoring extending to various aspects of production, sales, clearances, stocks, and related activities. Of paramount importance, the press release underscores the mandatory requirement of affixing tax stamps on every bag of sugar produced or supplied.
Non-compliance with this essential requirement is deemed a punishable offense as per Section 33(23) of the Act, and products found in violation are liable to confiscation. In addition to the risk of forfeiture, convicted defaulters may also face imprisonment for a maximum of three years.
Leveraging Section 40-B of the Sales Tax Act 1990, the FBR has entrusted its field formations with the task of monitoring the sales of sugar production in all sugar mills nationwide. Specially designated tax officers at these mills will meticulously scrutinize stock clearances through a manually installed system of tax stamps affixed to sugar bags.
Under the enforcement provision of the sales tax law, the FBR or chief commissioner retains the authority to assign an officer of Inland Revenue to the premises of a registered person or a class of such persons for the purpose of monitoring production, sales of taxable goods, and stock positions.
This initiative is poised to enhance compliance with tax regulations and significantly augment transparency within the sugar industry.
The FBR’s resolute steps against tax evasion within the sugar sector signal a determined commitment to fiscal integrity and fair taxation practices.