Islamabad, June 24, 2024 – The Federal Board of Revenue (FBR) has initiated a nationwide audit of urea and fertilizer dealers to ensure they accurately report their earnings and pay the appropriate amount of income tax. According to an FBR statement issued on Monday, audit notices have been sent out to 437 cases.
The audit proceedings are currently underway and are expected to be concluded shortly. Additionally, notices have been issued to all non-filers by the concerned Inland Revenue Field Formations.
This move to conduct audit comes as part of the government’s broader efforts to enhance tax compliance and transparency within the fertilizer sector.
Last week, Federal Minister for Industry and Production, Rana Tanveer Hussain, directed that a third-party audit be conducted to determine the production costs of fertilizer companies. This directive aims to ensure transparency and fair pricing in the industry. The audit decision was made during a Fertilizer Review Committee meeting chaired by Rana Tanveer Hussain, which was attended by Federal Secretary Industries and Production, Dr. Muhammad Fakhre Alam Irfan.
During the meeting, the committee reviewed the availability, demand, and prices of urea in the country. Rana Tanveer Hussain assured that there is no shortage of urea fertilizer in the country and highlighted the measures taken to ensure an uninterrupted supply of gas to fertilizer companies for smooth production.
The minister also instructed fertilizer companies to review the performance of their dealers and agencies. He directed the provinces to verify these dealers and agencies, with a mandate to block any ghost dealers or agencies found. This verification process is intended to improve the efficiency and integrity of the fertilizer distribution network.
Rana Tanveer emphasized that fertilizer companies must ensure a consistent supply of fertilizer to all provinces. To maintain close oversight, the Fertilizer Review Committee will now meet weekly to monitor the situation and address any emerging issues promptly.
The FBR’s audit and the third-party cost assessment are part of the government’s concerted efforts to promote fairness and accountability in the fertilizer industry. These steps are expected to help stabilize the market, ensure fair pricing for farmers, and enhance the overall efficiency of the sector.