Karachi, November 22, 2024 – The Federal Board of Revenue (FBR) on Thursday deployed tax officials at sugar mills located in the Sindh and Punjab provinces to detect tax evasion.
To deploy the staff at the sugar mills, the FBR invoked Section 40B of the Sales Tax Act, 1990, which authorizes tax officials to undertake stock-taking, audits, and monitor the sales and purchases at business premises.
Under the new directives issued by the FBR to the Large Taxpayers Office (LTO) Lahore and LTO Karachi, tax officials have been deputed to 68 sugar mills in both provinces: 43 in Punjab and 25 in Sindh.
The FBR’s decision to deploy tax officials at the sugar mills came after directives from the Prime Minister, who is personally involved in eradicating tax evasion across various sectors to generate additional revenue for the country.
According to the instructions given by the FBR, tax officials are to conduct an initial stock-taking at each sugar mill, which should include the name of the sugar mill, the opening stock of sugar, and the opening stock of molasses.
It is also directed that the tax officials record the start and end dates of production at each sugar mill. Furthermore, the FBR has directed them to record the number of trolleys entering the sugar mills and the weight of sugarcane unloaded at each sugar mill on a daily basis.
The FBR has instructed officials to record the daily production of sugar and lifting of sugar. Additionally, the tax officials are tasked with recording the production capacity and storage of each sugar mill. It must be ensured that track and trace stamps are properly affixed.
The FBR has instructed both the Lahore and Karachi LTOs to nominate an officer as the focal person, who shall:
a. Ensure the presence of officials at each sugar mill within their jurisdiction.
b. Report the production of sugar and lifting of sugar to the FBR on a daily basis.
c. Ensure proper filing of sales tax returns, including Annexure J, by each sugar mill.
d. Cross-check sugar production and lifting data captured through Section 40B with the sugar production and lifting reported by sugar mills in their monthly sales tax returns.
The FBR has stated that the officials will be posted at the sugar mills until November 30, 2024.
