In a bid to enhance transparency, combat tax evasion, and ensure compliance with legal requirements, the Federal Board of Revenue (FBR) has reinforced the obligation of mandatory tax stamps on all sugar bags.
The FBR’s directive is a part of its ongoing efforts to streamline the sugar sector and create a more accountable and transparent supply chain.
A communication issued by the Project Director, Track and Trace System, FBR, has been circulated to all Chambers of Commerce & Industries, Trade Bodies, and Trade Associations across the country. The communication serves as a reminder and advisory for strict adherence to the legal stipulations of the Track & Trace System in the sugar sector. Non-compliance with these regulations could lead to legal repercussions for those involved in the supply chain.
The FBR’s communication refers to Sales Tax General Order No. 05 of 2021, which explicitly stated that, as of November 11, 2021, no sugar bags from the current crushing season 2021-22 would be permitted to move out from a production site, factory premises, or warehouse without the affixation of tax stamps and Unique Identification Marks (UIMs).
Furthermore, the FBR emphasizes that all stakeholders in the supply chain, including distributors, wholesalers, dealers, and retailers, are obligated not to accept, receive, or sell any sugar bag from the current season without the proper tax stamp affixed. Failure to comply with these directives could result in penal action, in accordance with the provisions outlined in the Sales Tax Act of 1990.
The move to implement tax stamps on sugar bags is a crucial step towards creating a more transparent and accountable sugar sector. By leveraging technology and traceability measures, the FBR aims to curb tax evasion, promote fair practices, and ensure that the sugar supply chain operates within the bounds of the law.
The FBR’s commitment to enforcing these measures reflects its dedication to fostering a business environment that adheres to legal standards and contributes to the overall economic integrity of the country. The use of tax stamps not only aids in revenue collection but also acts as a deterrent against illicit practices within the sugar industry.
Stakeholders are urged to familiarize themselves with these regulations and actively participate in ensuring compliance, contributing to the broader goal of a transparent and law-abiding sugar supply chain in Pakistan. The FBR’s proactive stance on implementing such measures aligns with its mission to create a fair and accountable tax system that benefits the entire economy.
