FTO Orders FBR to Probe Sugar Supply Scams Across the Country

While reviewing a complaint, the Federal Tax Ombudsman (FTO) directed the Federal Board of Revenue (FBR)  to conduct an incisive investigation regarding the phenomenon of fake supplies in the sugar sector across the country.

The main facts of the case are, the complainant is engaged in the sale of medicines at a small scale in Lakki Marwat and the monthly rent of his medical store is Rs. 8,000. He was shocked to receive notice from RTO Peshawar showing Rs. 13.590 million supply from a few sugar mills, as his identity card was being misused by the main dealer of sugar mills.

The complainant submitted an affidavit to concerned tax officers of RTO Peshawar, disowning the receipt of supplies. He also submitted bank statements showing his turnover and financial position. However, no action was taken against the real culprit. He prayed for directions to FBR to carry out an investigation from concerned sugar mills, instead of issuing notices to him.

The complainant took up the matter with the FTO, who observed that no meaningful investigation had been conducted either by RTO, Peshawar, or any other concerned tax officer. Instead of investigating alleged fake supplies and the dubious role of the main dealer of sugar mills, the tax officers issued show-cause notices to the complainant.

The arbitrary, whimsical action coupled with inattention and ineptitude on part of RTO’s Peshawar tantamount to maladministration as denied under section 2 (3)  (i) (b) (c) & (ii) of the FTO ordinance.

Accordingly, Tax Ombudsman has directed FBR to conduct an incisive investigation regarding allegations leveled & surfaced during the instant complaint, especially with reference to sugar mills and the alleged conduct of the main dealer of sugar mills, and to instruct all directorates of  I&I  to conduct these investigations in their respective jurisdictions with reference to high turnover sectors like cement, sugar, steel, cigarette, beverages, and fertilizers.

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