According to sources, the Federal Board of Revenue has sealed all sugar mills that refused to install the required production monitoring system and cameras at their production sites.
FBR sources said that under the directions of the Prime Minister of Pakistan, an improved monitoring system for sugar production has been implemented after the start of the sugarcane crushing season for 2025 to 26. At present, five monitoring systems are in operation. These include automatic counters on hoppers to count finished bags, video recording, digital eye counting, an accounting system for every dispatch, and the deployment of staff to monitor production and sales.
Sources said the effectiveness of the new system is ensured by the presence of FBR officials at each mill. The system and staff are monitored through connected cameras and regular visits by senior officers, along with other arrangements. This monitoring is carried out across the entire supply line to verify whether sugar is being sold to genuine distributors or supplied to hoarders.
According to sources, on January 4, 2026, FBR officials posted at Safina Sugar Mills in Lalian, Chiniot district, sealed two chutes of the mill. This action was taken because the mill management failed to install the required cameras on those two chutes, which is a violation of the monitoring instructions under the Sales Tax Rules 2006. As a result, the FBR team sealed both chutes until the mill management installs the cameras.
Sources added that the government has reaffirmed its strict policy against tax evasion and rule violations in the sugar sector. These measures are part of a wider campaign to strengthen tax enforcement and protect government revenue. Strict monitoring and swift action will continue to ensure compliance even after the crushing season ends, and to make sure sugar is supplied to the public while due taxes are collected.
