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FBR Flags Eight Sugar Mills for Massive Tax Evasion

ISLAMABAD: The Federal Board of Revenue (FBR) has uncovered large-scale tax evasion by eight sugar mills, several of which are reportedly linked to politically influential individuals. The discovery comes amid intensified scrutiny of the sugar sector, which has led to a notable surge in tax revenues during the outgoing fiscal year.

The revelations emerged during a meeting of the National Assembly’s Standing Committee on Finance, where Opposition Leader Omar Ayub Khan demanded full disclosure of the names of the mills found to be non-compliant with tax regulations.

Finance Minister Muhammad Aurangzeb and Minister of State for Finance Bilal Azhar Kiyani were present at the session. FBR Chairman Rashid Mehmood Langrial informed the committee that enforcement actions had significantly boosted revenue collection from the sugar sector. He also claimed to possess video evidence of the mills’ non-compliance.

Following repeated demands, a sealed envelope containing the list of mills was eventually handed to Committee Chairman Naveed Qamar, who passed it on to the opposition leader. However, when pressed on the penalties imposed, Langrial admitted he was unaware of the exact figures.

Evasive Tactics and Regulatory Violations

The details provided highlight several violations:

  • Concealed Chutes: One mill was caught operating a hidden chute to divert sugar production and avoid official tracking. The FBR sealed the chute and confiscated 1,200 metric tons of sugar.

  • Disconnected Monitoring Systems: Another mill deliberately detached its systems from the FBR’s digital monitoring network. Authorities seized 150 metric tons of sugar and five transport vehicles.

  • Non-cooperation: A mill was entirely sealed after refusing to surrender its Network Video Recorder (NVR), crucial for surveillance.

  • Track-and-Trace System Bypass: A separate facility was found dispatching sugar bags without the mandatory Track-and-Trace System (TTS) stamps. The FBR responded by sealing the godowns and conducting a stock audit.

  • Surveillance Gaps: Another sugar mill failed to install the required number of CCTV cameras. The weighbridge was sealed, and its faulty shooter machines—used for automatic bagging—were also shut down.

  • Geographic Diversion: One facility diverted its sugar output to a region outside TTS coverage, prompting the FBR to seal the entire bagging unit.

  • Counting Discrepancies: One mill faced action after discrepancies were found between the recorded and actual number of sugar bags. Malfunctioning shooter systems were sealed.

FBR Chairman Langrial emphasized that regulatory enforcement would continue through advanced surveillance technologies and field inspections. “We are committed to holding every tax evader accountable and ensuring that all sugar mills operate under strict compliance,” he told the committee.


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