FBR Places Tax Officers Inside Sugar Mills

The Federal Board of Revenue (FBR) has intensified its oversight of Pakistan's sugar industry by deploying tax officers and support staff at numerous sugar mills. This measure, enacted under Section 40B of the Sales Tax Act, 1990, aims to track production, sales, and inventories within the industry. Officials have been assigned to specific mills in Punjab, Sindh, and other regions to monitor manufacturing activities, sales, and stock positions.

The deployment replaces a previous order issued on July 21, 2026, and includes major sugar producers such as JDW Sugar Mills, JK Sugar Mills, Hunza Sugar Mills, and Shakarganj Sugar Mills. FBR has sent Inland Revenue officers, inspectors, and clerical staff from various tax offices, including Lahore, Faisalabad, and Peshawar. These officials will directly observe production and sales, comparing reported figures with stock records and tax data to identify discrepancies and enhance tax compliance.

The physical presence of FBR personnel at the mills is expected to facilitate the identification of tax evasion and ensure accurate reporting. The deployment began on August 21, 2026, and will continue until September 21, 2026. FBR has ensured seamless transitions between incoming and outgoing officials to maintain continuous monitoring throughout the period.