The Federal Board of Revenue has stepped up enforcement in the sugar sector by sealing two production chutes at Safina Sugar Mills in Chiniot for violating mandatory digital monitoring requirements under the Track and Trace system.
The action follows directives issued by Muhammad Shehbaz Sharif after the start of the 2025 26 sugarcane crushing season, as the government intensified efforts to ensure transparency, curb tax evasion, and strengthen compliance across the sugar supply chain.
According to the FBR Spokesperson, the sealed chutes at Safina Sugar Mills in Laliyan were found operating without the mandatory digital eye cameras and network video recording systems, a clear violation of Track and Trace requirements under the Sales Tax Rules 2006.
As part of the enhanced oversight framework, the FBR has rolled out a comprehensive production monitoring system across sugar mills. This includes Track and Trace stamps, automated hopper counters, video recording, digital eye counting, and S Track invoicing at mill out gates.
The monitoring regime also involves the deployment of FBR staff, round-the-clock CCTV surveillance, regular visits by senior officers, and Inland Revenue Enforcement Network checks to ensure compliance at every stage of production and supply.
FBR said the objective of the strengthened system is to prevent under-reporting of production, safeguard national revenue, and ensure the availability of sugar to consumers even after the crushing season ends.
FBR added that it will maintain close oversight throughout the crushing season to protect public revenue and promote transparency in one of the country’s most closely watched industries.