Islamabad, January 4, 2026 — The Federal Board of Revenue (FBR) on Sunday took strict enforcement action against a sugar mill for non-compliance with mandatory production monitoring requirements, including the failure to install the digital eye system.
Following directives of Prime Minister Muhammad Shehbaz Sharif and the commencement of the 2025–26 sugarcane crushing season, the FBR has rolled out an enhanced sugar production monitoring framework aimed at curbing tax evasion and ensuring transparency across the sector.
Five-Layer Monitoring System Implemented
According to an official statement, the upgraded monitoring regime comprises five integrated oversight mechanisms, including:
• Track and Trace Stamps
• Automated counters at hoppers to record produced sugar bags
• Continuous video recording
• Digital eye counting system
• S-Track invoicing system for monitoring sugar dispatches at mill exit gates
In addition, FBR staff have been deployed at sugar mills to supervise manufacturing and sales operations.
Real-Time Surveillance and Field Enforcement
The effectiveness of the system is ensured through round-the-clock CCTV monitoring, frequent inspections by senior FBR officers, and random field checks by the Inland Revenue Enforcement Network (IREN). The enforcement network is also monitoring the entire supply chain to verify whether sugar is being sold to genuine distributors or diverted to hoarders.
Chutes Sealed at Safina Sugar Mills
As part of ongoing enforcement actions, FBR officials on January 4, 2026 sealed two chutes at Safina Sugar Mills, located in Laliyan, District Chiniot. The move was taken after the mill management failed to install mandatory digital eye cameras and NVR systems on the sealed chutes, in violation of Track and Trace requirements under the Sales Tax Rules, 2006.
The chutes will remain sealed until full compliance is ensured through the installation of the required monitoring equipment.
Zero Tolerance for Non-Compliance
Reaffirming the government’s stance, the FBR reiterated its zero-tolerance policy against tax evasion and non-compliance in the sugar sector. The authority said such actions are part of a broader drive to strengthen tax enforcement, safeguard government revenue, and ensure transparency in sugar production and sales.
The FBR added that strict monitoring and swift enforcement will continue even after the crushing season, to ensure tax recovery and maintain uninterrupted sugar supply for consumers.