The Federal Board of Revenue (FBR) has stepped up monitoring of Pakistan’s sugar industry by placing Inland Revenue officers and support staff at dozens of sugar mills to track production, sales and inventories.
The deployment has been made under Section 40B of the Sales Tax Act, 1990, which allows FBR to monitor production, sales and stock-related activities at business premises.
Under the latest order, FBR officials have been assigned to specific sugar mills and will directly monitor manufacturing activity, sales and stock positions. The new order replaces FBR’s earlier deployment order issued on July 21, 2026, along with subsequent replacement orders.
The monitoring covers sugar mills across Punjab, Sindh and other parts of the country. Major groups and mills included in the deployment include JDW Sugar Mills, JK Sugar Mills, Hunza Sugar Mills, Shakarganj, Tandlianwala Sugar Mills, Thal Industries, Chaudhary Sugar Mills, Noon Sugar Mills, Ramzan Sugar Mills, RYK Mills, Shahtaj Sugar Mills and several others.
FBR has deployed Inland Revenue officers, inspectors, assistant officers, supervisors, MIS staff, clerical personnel and other support staff from various tax formations.
These officials have been drawn from Large Taxpayers Offices, Regional Tax Offices and Chief Commissioner Inland Revenue offices, including formations in Lahore, Faisalabad, Bahawalpur, Multan, Sahiwal, Sargodha, Peshawar, Sukkur and Gujranwala.
The physical presence of FBR officials at the mills will allow the tax authority to directly observe production and sales and compare reported figures with stock records and sales tax information. This could help the department identify discrepancies and improve tax compliance.
The latest deployment became effective on August 21, 2026. Officials were required to report to their assigned mills by August 22, while the monitoring arrangement will remain in place until September 21, 2026.
FBR has also ordered that the handover between outgoing and incoming officials be managed without interruption so that no sugar mill remains without an FBR representative during the monitoring period.
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