The Federal Board of Revenue (FBR) has intensified monitoring of Pakistan’s sugar industry by placing Inland Revenue officers and support staff at dozens of sugar mills. The officials will track production, sales and inventory levels.
The deployment comes under Section 40B of the Sales Tax Act, 1990. The provision allows FBR to monitor production, sales and stock-related activities at business premises.
FBR Expands Monitoring Across Sugar Sector
Under the latest order, officials will directly monitor manufacturing, sales and stock positions at assigned mills. The order replaces an earlier deployment issued on July 21, 2026, along with subsequent replacement orders.
The monitoring covers sugar mills across Punjab, Sindh and other regions. Major groups and mills include JDW Sugar Mills, JK Sugar Mills, Shakarganj, Tandlianwala Sugar Mills, Thal Industries, RYK Mills and Shahtaj Sugar Mills.
FBR has deployed Inland Revenue officers, inspectors, supervisors, MIS staff and other support personnel. These officials come from Large Taxpayers Offices, Regional Tax Offices and Chief Commissioner Inland Revenue offices.
Officials to Track Production and Sales
The physical presence of FBR staff will allow the authority to compare reported production and sales with stock records and sales tax information. Consequently, the move could help identify discrepancies and improve tax compliance.
The latest deployment took effect on August 21, 2026. Officials had to report to their assigned mills by August 22, while the monitoring arrangement will continue until September 21.
FBR has also directed outgoing and incoming officials to complete handovers without interruption. This will ensure that every assigned sugar mill has an FBR representative throughout the monitoring period.
