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Tag: sugar mills

  • Jahangir Tareen’s sugar mill declares 248% rise in annual profit

    Jahangir Tareen’s sugar mill declares 248% rise in annual profit

    The sugar mill of Jahangir Khan Tareen – ruling party PTI’s leader and used to very close to Prime Minister Imran Khan – has declared a phenomenal increase of 248 per cent in annual profit for year ended September 30, 2021.

    Jahangir Khan Tarin is director of JDW Sugar Mills.

    JDW Sugar Mills Limited on Wednesday shared its financial results with the Pakistan Stock Exchange (PSX).

    READ MORE: Digital tax monitoring yields Rs32.43bn from sugar sector

    The board of the company in a meeting held on January 05, 2022 recommended a final cash dividend for the financial year ended September 30, 2021 at Rs10 per share i.e. 100 per cent.

    Gross profit of the company increased to Rs10.13 billion for the year under review as compared with Rs7.59 billion in the preceding year.

    READ MORE: FBR tightens condition for tax stamped sugar bags

    According to JDW website, Tareen’s experience in business world began when he was made the CEO of his family-owned beverages business in Multan in 1981.

    Over the next eight years, he increased the business manifold and in the year 1989 Pepsico International offered him a franchise in Lahore.

    Tareen took over the franchise in 1991 as the Chairman of Riaz Bottlers (Pvt) Limited and developed it into one of the Pakistan’s best operating franchise.

    READ MORE: FPCCI recommends interprovincial trade of sugar

    He went into sugar business and established his first sugar mills in 1992 as JDW Sugar Mills. This has grown into Pakistan’s largest and most efficient Sugar milling operations (JDW Sugar Mills). This is the only Sugar Mill in the country, which is supported by its own Sugarcane Plantation (30,000 acres) and Sugar cane research organisation.

    The Mills runs an extensive community development programme geared towards increasing yield and profitability of small farmers while also funding education and health initiatives in its area of operations.

    The per acre yield of sugarcane in Rahim Yar Khan has doubled due to the Cane Development Program of JDW Sugar Mills. While per acre production cost has been reduced by innovative cultivation and production techniques.

    READ MORE: PSMA, 84 sugar mills served show cause notices for cartelization

    It’s due to the combined efforts of sugarcane development, farmers’ training, motivating farmers with timely payments, that sucrose recovery in the operating area of JDW Sugar Mills jumped from 8.2 per cent to almost 11 per cent in 2016.

  • FBR decides posting officials for sugar crushing 2021-22

    FBR decides posting officials for sugar crushing 2021-22

    ISLAMABAD: The Federal Board of Revenue (FBR) has decided to deploy officials at sugar mills for monitoring of production and supply of sugar, sources said on Tuesday.

    The sources said that the tax offices having jurisdiction over sugar mills would post their officials for the crushing season 2021-2022.

    In this regard the FBR would invoke Section 40B of Sales Tax Act, 1990 for physical monitoring of manufacturing and supply of the commodity.

    In this regard, tax offices in Lahore have initiated the process for deploying the officials at the sugar mills. The Regional Tax Office (RTO) Lahore has placed its officials at the disposal of chief commissioner Inland Revenue, Large Taxpayers Office (LTO) Lahore.

    The sources said that the monitoring would help bringing down retail price of the commodity in the local market.

    It is worth mentioning that the sugar prices have gone up to Rs160 per kilogram in some parts of the country. However, as the crushing is coming near the prices have come down.

    This year the FBR has planned to document all the supply chain from manufacturing to the retail sale of the sugar.

    Through Finance Act, 2021 the treatment of sales tax on supply of sugar was changed and it was brought taxation at the retail price. The FBR through Circular No. 02 of 2021 stated: “Currently, the price of white crystalline sugar is fixed at Rs60 per kg in terms of SRO 812(I)/2016 dated September 02, 2016, which is considerably below the actual market price of the commodity.

    “In order to address this anomaly, sugar is proposed to be included in Third Schedule of the Sales Tax Act, 1990, so that sales tax is charged and collected on actual retail price of the product at the manufacturing stage.

    “This measure would not only ensure due payment of tax but also help in putting a more effective price control mechanism in place for sugar.”

    The rate of sales tax at 17 per cent on retail price was to be applicable on sugar supply from July 01, 2021. However, the implementation was deferred till November 30, 2021. Therefore, the normal sales tax rate on sugar supply will be applicable from December 01, 2021.

    Meantime, the FBR has increased the minimum sales tax rate on domestically produced sugar to Rs72.22 per kg from Rs60 per kg.

    Tax on sugar retail sale to be imposed from December 01
  • FBR procures video surveillance system for sugar mills

    FBR procures video surveillance system for sugar mills

    ISLAMABAD: Federal Board of Revenue (FBR) has decided to procure Video Analytic Surveillance (VAS) system from a single vendor to install the equipment at all the sugar mills across the country, sources said on Thursday.

    Earlier, it was decided that the cost of installation has to be borne by sugar mills but ongoing lackluster response and delaying tactics compelled the authorities to purchase the equipment for early solution of transparent monitoring of sugar production and supply.

    On February 08, 2021, the FBR presented a summary regarding procurement of VAS for proper monitoring of the production and sale of sugar in compliance with the directive of the prime minister. The Economic Coordination Committee (ECC) of the Cabinet approved an allocation of Rs350 million as a Technical Supplementary Grant for installation of the most optimal VAS solution at the sugar mills’ premises during the current crushing season as requested by the FBR.

    In order to properly monitor the production and sale of sugar and the attendant sales tax and income tax thereon, Federal Board of Revenue (FBR) issued SRO 889(I)/2020, dated 21.09.2020 warranting all sugar mills to install VAS System expecting that the process would be completed before official onset of the crushing season on 10.11.2020.

    FBR ran a rigorous process of procurement as enshrined under the VAS Rules, 2020, and pre-qualified/approved seven vendors for supply and installation of the System on sugar factories.

    The FBR said that the VAS System, however, has so far been installed only by a few sugar mills and those too are sub-optimal solutions. “Ostensibly, the cost, which under the prevailing rules is to be borne by the sugar mills, has been the key factor towards non-implementation of the VAS System.”

    Sugar mill-owners, in an apparent effort to cut cost, went around getting demonstrations and quotations from all seven vendors consuming unending time in the process.

    Those that went ahead with installation eventually opted for the cheapest and sub-standard solutions.

    A relatively small contract size/volume (80 mills only) to be distributed over seven vendors, also did not prove enough an incentive for the vendors to aggressively invest in procurement of the systems and install in a timely fashion.

    The last deadline, i.e., January 31, 2021 has already expired and it seems unlikely that the system would be installed in a satisfactory manner across the board by all the mills.

    The FBR said that the situation warrants a change in approach.

    Accordingly, FBR has been tasked to select and contract one vendor to install the video-analytics solution across all manufacturers of sugar in Pakistan and in the shortest possible time.

    The cost is to be borne by the government and the vendor will submit its invoices to FBR for payment.

  • Sugar mills monitoring: ECC approves Rs350 million for VAS purchase

    Sugar mills monitoring: ECC approves Rs350 million for VAS purchase

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved Rs350 million for procurement of Video Analytics System (VAS) to monitor production of sugar mills.

    Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired the meeting of the ECC.

    The Federal Board of Revenue (FBR) presented a summary regarding procurement of VAS for proper monitoring of the production and sale of sugar in compliance with the directive of the prime minister.

    “The ECC approved an allocation of Rs350 million as a Technical Supplementary Grant for installation of the most optimal VAS solution at the sugar mills’ premises during the current crushing season as requested by the FBR,” a statement said.

    Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Energy Omar Ayub Khan, Adviser to the PM on Institutional Reforms and Austerity Dr. Ishrat Hussain, SAPM on Revenue Dr. Waqar Masood, SAPM on Power Tabish Gauhar, Governor State Bank Reza Baqir, Chairman FBR and Chairman Board of Investment participated in the meeting.

    Secretary, Ministry of Energy briefed the ECC about the detailed report by the Implementation Committee regarding conversion of MOUs into Agreements with IPPs to devise a payment mechanism for clearing outstanding payables.

     The Implementation Committee has agreed the payment mechanism with the 46 IPPs to clear the outstanding dues as on 30th November, 2020.

    The ECC commended the efforts made by the Implementation Committee and acknowledged the input of all concerned including Federal Minister for Energy, Federal Minister for Planning, SAPM on Power, Finance Division, Chairman Federal Land Commission, SAPM on Revenue, Governor SBP etc in working out a viable payment mechanism with the IPPs which will eventually save approximately Rs836 billion for the government over the average life of the projects.

    The ECC approved the report of the Implementation Committee with a direction to present the same before Cabinet for final approval.

  • Meeting decides speeding up installing video monitoring cameras at sugar mills

    Meeting decides speeding up installing video monitoring cameras at sugar mills

    ISLAMABAD: A high level meeting chaired by Prime Minister Imran Khan on Wednesday decided to speed up the process of installing video monitoring cameras at sugar mills to ensure transparency in production and supply.

    The prime minister was presiding over weekly review meeting regarding the availability and prices of basic commodities across the country.

    The meeting was briefed about the various measures taken in the light of Sugar Inquiry Report to keep the price of sugar under control. It was decided that the process of installation of cameras in sugar mills would be quickened.

    Besides, the Federal Board of Revenue (FBR) will provide the provincial governments with details of sales tax collected in the head of sugar so as to make the system transparent.

    The meeting was told that owing to the effective measures taken by FBR, the collection of sales tax from sugar had recorded 84 percent increase during July-January period of the current fiscal year.

    Prime Minister Imran Khan said that besides making the availability of basic commodities certain, ensuring appropriate prices was foremost priority of the government.

    He directed the administration of Utility Stores Corporation (USC) to ensure the ample availability of basic goods at all outlets.

    The meeting was attended by the relevant Federal and Provincial Ministers, Secretaries, Chief Secretaries and other senior officers.

    The prime minister directed the Ministry of National Food Security to complete at the earliest the assessment work regarding the future requirement of basic commodities like wheat and sugar so as to ensure advance arrangements in that regard.

    He directed all the chief secretaries to ensure the implementation of price list through active and effective role of the administration.

    The prime minister ordered to ensure immediate action against the officers committing any negligence in that respect.

    Minister for Finance Dr Hafeez Sheikh told the meeting that in the month of January 2021, the Consumer Price Index (CPI) was recorded at 5.7 percent as against 14.6 percent recorded in the corresponding month of previous fiscal year.

    Similarly, the CPI recorded at 8.2 percent during July-January period of the current fiscal was also lower when compared with 11.2 percent recorded during the same period of last fiscal, he added.

    The meeting was told that the comparison based on the latest statistics depicted significant decline in CPI.

    It was further told that the prices of sugar, eggs, onion etc. have recorded decline whereas the price of wheat flour had shown stability.

    The meeting was also briefed about the situation of official release of wheat along with the details of price differential at whole sale and retail levels in various districts.

    It was told that price differential at whole sale and retail levels depicted the failure of market committees.

    The meeting decided to immediately abolish the existing market committees in the two provinces ruled by Pakistan Tehrik-e-Insaf (PTI) and hand over the responsibilities to District and Tehsil administrations till the constitution of new committees comprising competent people through a transparent process.

    It was decided that in case of non-implementation of price list, action would be taken against the relevant Assistant Commissioner.

  • Tax offices directed to issue penalty notices to sugar mills for not complying VAS

    Tax offices directed to issue penalty notices to sugar mills for not complying VAS

    ISLAMABAD: Federal Board of Revenue (FBR) has directed tax offices to issue penalty notices to sugar mills, which have failed to install video analytics system, sources said on Saturday.

    The FBR directed Chief Commissioners of LTO, MTO, CTO of Karachi, Lahore and RTO Peshawar to issue penalty notices to non-compliant sugar mills which have not followed FBR guidelines.

    The FBR also decided to launch stern action from next week against sugar mills and suppliers of video analytics system (VAS), who failed to comply with the mandatory requirement under the law.

    “The FBR will take action by imposing heavy penalties on non-compliant sugar mills and non-compliant vendors if they fail to install the video analytic equipment at their factory premises by January 31, 2021,” according to a notice sent to vendors of VAS.

    The notice has been sent to all the pre-qualified vendors, included: M/s. AJCL (Pvt) Ltd., M/s. TPL Trekker, M/s. CNS Engineering & Technology, M/s. NRTC and GCS, M/s. COMMTEL, M/s. DWP Technologies and M/s. Focus Technology Pvt Ltd.

    The FBR said that it had authorized seven vendors through its report on November 20, 2020 for VAS and the copy was shared with Pakistan Sugar Mills Association (PSMA) and all pre-qualified vendors to initiate the process.

    In order to ensure the implementation of VAS, the FBR issued a letter on December 02, 2020 directing the PSMA to provide mill wise update status of deployment of VAS by December 31, 2020, which was further extended up to January 31, 2021.

    “In response to the letters only few sugar mills have issued final quotations to the vendors for installation of the system. However, large number of sugar mills is not willing to implement the system as they have either issued provisional quotations or not issued any quotation at all the process of VAS.”

    The FBR observed that the pre-qualified vendors had failed to install the video analytics equipment on the sugar mills, which had issued final quotations to the pre-qualified vendors for the system.

    It is pertinent to mention that the Video Analytics Rules, 2020 were issued through SRO 889(I)/2020 dated September 21, 2020. These clearly laid down responsibilities of the manufacturer to provide unhindered availability of production facilities for installation of the system.

    Besides, Rule 150ZQT(2) of the rules provides severe penalty of non-removal goods from business premises by non-compliant manufacturing units.