Islamabad, November 19, 2024 – Prime Minister Muhammad Shehbaz Sharif has directed a coordinated effort by the Federal Board of Revenue (FBR), Federal Investigation Agency (FIA), and Intelligence Bureau to address tax evasion, undocumented sugar sales, and price manipulation in the sugar sector.
According to a statement from the Prime Minister’s Office, the directives come ahead of the sugar crushing season, with a focus on ensuring the complete collection of General Sales Tax (GST) from sugar mills and dealers. The Prime Minister emphasized the importance of transparency in the sector to curb tax evasion and stabilize prices.
As part of the strategy, PM Shehbaz ordered the installation of cameras at sugar mills to prevent hoarding and monitor production. He warned sugar mill owners against engaging in tax evasion or hoarding practices, cautioning that any violations would result in strict legal action.
“No increase in sugar prices will be tolerated,” Prime Minister Shehbaz stated, underlining his administration’s commitment to protecting consumers from undue financial burdens.
In addition to the sugar industry, PM Shehbaz instructed authorities to implement similar measures in other critical sectors, including steel, cement, cigarettes, and beverages. These sectors have been identified as areas where tax evasion and undocumented sales are prevalent.
A formal notification detailing the Prime Minister’s directives has been issued, calling for immediate enforcement of the new measures.
The move is part of the government’s broader strategy to enhance tax compliance and address structural inefficiencies in Pakistan’s economy. By targeting key industries, the government aims to not only boost revenue but also ensure fair market practices.
Experts have lauded the decision, noting that tax evasion and undocumented transactions in the sugar sector significantly impact government revenue and contribute to price volatility. The installation of cameras at mills is seen as a step toward improving oversight and accountability in the sector.
With the sugar crushing season set to begin, the government’s firm stance signals its determination to eliminate malpractice and safeguard consumer interests. However, industry stakeholders have expressed concerns over the potential for overregulation and its impact on production efficiency.
The coordinated actions by the FBR, FIA, and Intelligence Bureau will play a critical role in ensuring compliance and maintaining price stability, as the government works to strengthen the nation’s economic framework.
