Eight sugar mills, many with ties to political elites, have been implicated in significant tax evasion, amounting to billions of rupees. The Federal Board of Revenue (FBR) has tightened enforcement measures in the sugar sector, resulting in an increased tax revenue during the outgoing fiscal year, The News reported.
The issue came to light during a meeting of the National Assembly’s Standing Committee on Finance on Wednesday. Opposition Leader Omar Ayub Khan raised questions about which sugar mills were involved in tax evasion. Minister for Finance and Revenue, Muhammad Aurangzeb, and State Minister for Finance, Bilal Azhar Kiyani, attended the session.
FBR Chairman Rashid Mehmood Langrial reported that tax collection from sugar mills had risen following FBR’s increased action. He also mentioned that a video showing non-compliance by these mills was available but failed to provide the list of mills involved.
After further questioning, the FBR staff provided the list, which was handed over to the opposition leader through committee Chairman Naveed Qamar.
Langrial did not provide details on the penalties imposed on the non-compliant mills, raising concerns about the lack of criminal proceedings against those found evading taxes.
FBR officials have detailed several cases of non-compliance by sugar mills, including one mill that had installed a concealed chute to divert sugar production, leading to the seizure of 1,200 metric tons of sugar.
Another mill disconnected its production lines from the FBR’s digital monitoring system, resulting in the confiscation of 150 metric tons of untaxed sugar and five transport vehicles.
Several other mills were found in violation of various compliance protocols, including the failure to use the mandatory Track-and-Trace System (TTS) and issues with CCTV camera installations.
Langrial assured the committee that FBR would continue to monitor the mills using both technology and physical inspections to ensure compliance with tax regulations.
