Islamabad, December 30, 2025 — In line with the federal government’s zero-tolerance policy against tax evasion and regulatory breaches, the Federal Board of Revenue (FBR) has sealed two sugar mills operating in Central Punjab for serious violations of sales tax laws.
The enforcement action reflects the authorities’ continued focus on improving tax compliance in high-risk sectors of the economy, particularly the sugar industry.
According to official sources, the sealing was carried out after the mills were found to be in breach of Section 40C of the Sales Tax Act, 1990, read with Chapter XIV-B and Chapter XIV-BA, along with Rule 150ZQZE of the Sales Tax Rules, 2006. These legal provisions mandate strict monitoring, real-time reporting, and compliance mechanisms for sugar mills to ensure transparency in production, sales, and tax payments.
The FBR stated that the violations involved non-adherence to prescribed monitoring and control requirements, which are designed to prevent tax leakage and under-reporting in the sugar sector. The action highlights the Board’s determination to take decisive measures against taxpayers involved in persistent and willful non-compliance.
Officials emphasized that all enforcement measures were undertaken strictly in accordance with the law, ensuring due process, transparency, and fairness. The primary objective, the FBR added, is to protect government revenue while maintaining a level playing field for businesses that comply with tax regulations.
Reaffirming its broader strategy, the FBR reiterated its commitment to encouraging voluntary tax compliance through facilitation and awareness, while continuing strict enforcement against violations of tax laws. The Board noted that similar actions may be taken against other non-compliant entities as part of ongoing efforts to strengthen tax administration and improve revenue collection across Pakistan.