Islamabad, August 21, 2025 – The Federal Board of Revenue (FBR) has announced a major tax operation targeting Pakistan’s sugar sector, signaling a strong move to address persistent tax gaps and potential evasion in the industry.
Reliable sources told PkRevenue that the FBR will initiate a comprehensive forensic audit of the sugar sector, involving the deployment of at least three highly skilled sector experts and audit mentors. These professionals will be stationed at Large Taxpayers Office (LTO) Lahore, Corporate Tax Office (CTO) Karachi, and Regional Tax Office (RTO) Peshawar to ensure thorough scrutiny.
Officials noted that the sugar industry has remained a high-priority segment for audit due to discrepancies between soaring market prices and comparatively low tax contributions. Despite a significant surge in the cost of white crystalline sugar, the sector’s tax payments have failed to reflect proportional growth.
The FBR recently commenced the hiring of 102 sector experts across 42 key industries, with the sugar sector being among the first to undergo this intensified audit. The scope of the investigation will cover mills, distributors, wholesalers, and retailers.
A key focus will be on the distribution network, as well as the verification of input purchases and the supply chain of refined sugar. By tightening monitoring, the FBR aims to enhance compliance and ensure that revenue collection from this lucrative sector aligns with its true market potential.