ISLAMABAD: The Federal Board of Revenue (FBR) has increased monitoring of Pakistan’s sugar industry.
The tax authority has deployed Inland Revenue officials at dozens of Sugar Mills across the country.
The move aims to monitor sugar production, sales, and stock levels. Officials will remain present at assigned mills during the monitoring period.
The deployment has been made under Section 40B of the Sales Tax Act, 1990. This provision allows FBR to monitor business activities at registered premises.
FBR Officials Deployed at Sugar Mills
Under the latest order, officials have been assigned to specific Sugar Mills. They will directly observe manufacturing and sales activities.
Officials will also monitor inventory and stock positions at the mills. The collected information can be compared with reported figures.
The latest order replaces an earlier deployment issued on July 21, 2026. It also supersedes subsequent replacement orders issued by the tax authority.
The monitoring operation covers mills in Punjab, Sindh, and other parts of Pakistan. Several major sugar groups are included in the deployment.
These include JDW Sugar Mills, JK Sugar Mills, Hunza Sugar Mills, and Shakarganj. Tandlianwala Sugar Mills and Thal Industries are also among the listed mills.
Chaudhary Sugar Mills, Noon Sugar Mills, Ramzan Sugar Mills, and RYK Mills are included. Shahtaj Sugar Mills and several other mills are also covered.
Various Tax Officials Assigned
FBR has deployed different categories of Inland Revenue personnel. These include officers, inspectors, assistant officers, and supervisors.
MIS staff, clerical workers, and other support personnel have also been assigned. Officials have been drawn from different tax formations.
These formations include Large Taxpayers Offices and Regional Tax Offices. Chief Commissioner Inland Revenue offices are also involved.
Officials have been assigned from Lahore, Faisalabad, Bahawalpur, and Multan. Other locations include Sahiwal, Sargodha, Peshawar, Sukkur, and Gujranwala.
Focus on Tax Compliance
The physical presence of FBR officials will allow direct monitoring of mill operations. Officials can compare production figures with available stock records.
They can also check sales information against sales tax records. This process may help identify inconsistencies in reported figures.
The monitoring could also strengthen tax compliance within the sugar sector. FBR will be able to observe production and sales more closely.
Monitoring Period
The latest deployment became effective on August 21, 2026. Assigned officials were required to report to their respective mills by August 22.
The monitoring arrangement will continue until September 21, 2026. FBR has also ordered a smooth handover between outgoing and incoming officials.
The authority wants to ensure continuous monitoring throughout the period. No mill should remain without an assigned FBR representative.
The latest move places Sugar Mills under closer tax oversight. It also gives FBR a direct role in tracking production, sales, and inventories.
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The monitoring is expected to help the tax authority improve transparency. It may also assist in identifying differences between reported and actual business activity.
