ISLAMABAD: The Federal Board of Revenue (FBR) has sealed two sugar mills in central Punjab for serious breaches of statutory provisions, in line with the government’s zero-tolerance policy against violations of tax laws.

The enforcement action was taken following violations of Section 40C of the Sales Tax Act, 1990, read with Chapter XIV-B and Chapter XIV-BA, as well as Rule 150ZQZE of the Sales Tax Rules, 2006, which prescribe mandatory monitoring, control and compliance mechanisms for the sugar sector.

An official announcement issued on Monday said the action underscores the FBR’s resolve to ensure strict adherence to sales tax laws, particularly in high-risk sectors, and to take decisive measures against taxpayers involved in persistent non-compliance.

The FBR reaffirmed that all enforcement actions are being carried out strictly in accordance with the law, ensuring due process and transparency, with the objective of safeguarding government revenue and maintaining a level playing field for compliant taxpayers.

The board further reiterated its commitment to encouraging voluntary compliance, while continuing strict enforcement against wilful non-compliance and violations of tax laws.

Six officials suspended

Meanwhile, the FBR has initiated disciplinary action and immediately suspended six officials found to be unauthorisedly absent from their assigned monitoring duties at sugar mills, reaffirming its zero-tolerance policy towards misconduct and dereliction of duty.

The officials had been deployed under Section 40B of the Sales Tax Act, 1990 to ensure effective, transparent and uninterrupted monitoring of sugar production. Their absence was detected during routine monitoring and verification carried out by the Large Tax Office (LTO) Lahore, which is responsible for maintaining strict oversight of the attendance, conduct and performance of monitoring teams within its jurisdiction.

In view of the seriousness of the lapse, the LTO Lahore has proposed initiation of disciplinary proceedings against the officials concerned in accordance with applicable rules and procedures. Immediate suspension has been ordered to ensure accountability and to prevent any compromise in the monitoring process.

The FBR reiterated its commitment to maintaining the highest standards of discipline, integrity and professionalism across its field formations, warning that any dereliction of duty, misconduct or non-compliance with assigned responsibilities will be dealt with firmly and strictly under the law.

Published in Dawn, December 30th, 2025