ISLAMABAD: The Federal Board of Revenue (FBR) has sealed all sugar mills, where the mills’ management refused to install production monitoring system and required digital eye cameras and “NVR” system at their manufacturing premises.
According to the FBR, on directives of the Prime Minister of Pakistan, following the start of the sugarcane crushing season for the year 2025-26, the Federal Board of Revenue (FBR) has launched an improved production monitoring system for sugar.
Currently, there are five oversight systems in place, which are the Track and Trace Stamps, Automated Counters at the Hoppers for counting of the produced bags, video recording, digital eye counting, S-Track invoicing system for all the dispatches of sugar at the out gate of the sugar mills and posting of staff for overseeing the manufacturing and supervise sale of the sugar.
READ MORE: FBR seals two sugar mills in central Punjab over tax violations
The efficacy of the new system is ensured by the posting of FBR personnel at each mill and monitoring of the system and personnel through integrated CCTV cameras and frequent visits by senior officers of FBR, as well as, random checks by the Inland Revenue Enforcement Network (IREN) in the field. The enforcement network is working in the complete depth of the supply line and also verifying if the sugar is being sold to genuine distributors in the supply chain or is being sold to the hoarders.
In continuation of the above-mentioned actions and ongoing monitoring of sugar mills, on 04 January 2026, FBR staff posted at Safina Sugar Mills, Laliyan, district Chiniot, sealed two chutes of the mill.
The action is taken due to the mill management’s failure to install the required digital eye cameras and NVR system on these chutes which are violations of track and trace rules as given in sales tax rules 2006.
Consequently, the FBR team sealed both these chutes until mill management install digital eye camera and NVR camera on these chutes.
The government reiterates its zero-tolerance policy against tax evasion and non-compliance in sugar sector. These actions are part of a broader campaign to enhance tax enforcement in the sugar sector and protect government revenue. Strict monitoring and swift action will continue to ensure adherence to the law even after the close of crushing season to ensure the regular supply of sugar to the end consumers after recovery of tax due.
Copyright Business Recorder, 2026
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