ISLAMABAD: Acting on the directives of the Prime Minister of Pakistan following the commencement of the sugarcane crushing season 2025–26, the Federal Board of Revenue (FBR) has intensified monitoring of sugar production through an enhanced, multi-layered oversight mechanism aimed at curbing tax evasion and ensuring full compliance across the sector.
Under the improved system, five core monitoring tools are operational at sugar mills nationwide. These include Track and Trace stamps, automated bag-counting counters installed at hoppers, continuous video recording, digital eye counting systems, and the S-Track invoicing system for all sugar dispatches at mill out-gates. In addition, FBR staff have been deployed at mills to oversee manufacturing processes and supervise the sale and movement of sugar.
To ensure the effectiveness of this framework, FBR personnel and systems are monitored through integrated CCTV networks, frequent field visits by senior officers, and random inspections by the Inland Revenue Enforcement Network (IREN). The enforcement teams are also scrutinising the entire supply chain to verify that sugar is being sold to legitimate distributors and not diverted to hoarders.
As part of this ongoing drive, on January 4, 2026, FBR staff posted at Safina Sugar Mills, Laliyan, District Chiniot, sealed two production chutes after the mill management failed to install the mandatory digital eye cameras and Network Video Recorder (NVR) systems. The omission constituted a violation of the Track and Trace requirements under the Sales Tax Rules, 2006. The chutes will remain sealed until full compliance is achieved.
Reaffirming its zero-tolerance policy against tax evasion and non-compliance in the sugar sector, the Government of Pakistan stated that such actions form part of a broader enforcement campaign to safeguard public revenue. Authorities have emphasised that strict monitoring and prompt corrective measures will continue, even beyond the crushing season, to ensure lawful operations and uninterrupted sugar supply to consumers after the recovery of due taxes.
