Islamabad – The Federal Board of Revenue (FBR) has initiated an on-spot inspection campaign targeting beverage manufacturing units across the country.
As part of this latest enforcement initiative, FBR officials have been deputed directly at factory premises to closely monitor supply chains, purchases, stock levels, and record maintenance in the beverage sector.
According to official instructions issued to the Chief Commissioner Inland Revenue at the Large Taxpayers Office (LTO) in Lahore, the monitoring is being carried out under the authority granted by Section 40B of the Sales Tax Act, 1990 and Section 45(2) of the Federal Excise Act, 2005. These legal provisions empower the FBR to place Inland Revenue officers at the premises of registered businesses for real-time monitoring of production, sales, and inventory management.
The FBR emphasized that this measure specifically targets the beverage industry, which has witnessed significant growth and is considered a high-revenue sector. By physically deploying tax officers at beverage production sites, the FBR aims to enhance transparency, detect any tax evasion, and ensure that all transactions are being accurately reported.
Officials posted at these units will conduct round-the-clock monitoring of manufacturing operations, sales activities, and stock positions. Their presence is intended to deter underreporting and improve tax compliance in the beverage manufacturing industry. The instructions further note that these officers will remain stationed at the designated beverage factories until June 2, 2025.
Upon completion of the field exercise, the FBR has directed that a comprehensive report be submitted, summarizing findings, discrepancies observed (if any), and recommendations for future action. This proactive step underscores the FBR’s commitment to curbing revenue leakages in the excise and sales tax framework.
This marks a significant development in the FBR’s enforcement strategy, particularly aimed at industries like beverage manufacturing that are high in consumption and often scrutinized for under-invoicing or stock manipulation. The FBR’s strict oversight sends a clear signal that tax compliance in the beverage sector will be monitored with renewed vigilance.