ISLAMABAD: Prime Minister Shehbaz Sharif has announced strict action against sugar millers and dealers involved in tax fraud, undocumented sales, and price increases.

According to a PM Office press release issued on Tuesday, the premier directed a detailed analysis of the sugar sector to reduce sales tax evasion and pricing control to benefit customers. The premier believes that sugar mills are primarily owned by government and opposition members and that the industry should be closely regulated. He directed the Federal Board of Revenue (FBR), Federal Investigation Agency (FIA), and Intelligence Bureau (IB) to take joint action against sugar mills and dealers involved in concealing tax payments.

The premier also directed the installation of CCTV surveillance at every sugar mill to prevent hoarding. The direction came from the premier against mills much ahead of the start of cane crushing in the country.

FBR officials informed the premier that the track and trace system has already been deployed at all sugar mills. It was noted that new scanners had been installed, allowing for better stamping sugar sacks than the previous year.

Directs detailed sector analysis to prevent tax evasion, price manipulation

“We tested the new system and got better results,” a tax official stated.

When necessary, the FBR deputised officers to conduct physical inspections of sugar mills to ensure output. It was noted that mill owners who operate beverage enterprises may be involved in tax avoidance. According to the FBR, sugar mill proprietors can employ sugar in solution form in their beverages, potentially leading to tax evasion.

The prime minister has now directed FIA and IB to take joint action to prevent tax evasion on sugar sales, undocumented sales, and price hikes. A notification has also been issued in this regard.

It is worth noting that former Prime Minister Imran Khan also directed actions against sugar mills through the FIA. However, investigators from the then-FIA conducted a thorough investigation, resulting in a sugar sector crisis, and one of the PTI’s allies left the government following the sugar report.

According to the PMO announcement, the prime minister said that the cane-crushing season is starting and that complete GST collection from sugar mills and dealers should be ensured.

The prime minister said installing cameras at sugar mills would prevent sugar hoarding and maintain price stability. He said strict legal action would be taken against mill owners involved in tax evasion and hoarding.

He directed that any increase in sugar prices would not be tolerated. The premier said similar measures should be taken in other sectors, such as steel, cigarettes, cement, and beverages.

Published in Dawn, November 20th, 2024