During a Standing Committee on Finance meeting, opposition leader Omar Ayub received a list of the mills involved. However, the FBR chairman refrained from revealing the penalties placed on the defaulting mills.
Eight sugar mills, some linked to influential political figures, stand accused of massive tax fraud worth billions of rupees. Efforts by the Federal Board of Revenue (FBR) to enforce stricter rules in the sugar industry have led to higher tax collection in the last fiscal year, according to The News.
During a meeting of the National Assembly’s Standing Committee on Finance held Wednesday, the issue surfaced. Opposition Leader Omar Ayub Khan asked about the sugar mills dodging taxes. Both Muhammad Aurangzeb, the Minister for Finance and Revenue, and Bilal Azhar Kiyani, the State Minister for Finance, joined the session.
FBR Chairman Rashid Mehmood Langrial stated that tax collection from sugar mills increased due to stricter actions taken by the FBR. He mentioned a video showing mills failing to comply but did not share the names of the mills.
After more questioning, FBR staff provided the list. Committee Chairman Naveed Qamar then passed the list to the opposition leader.
Langrial did not share specifics about the penalties given to mills that failed to comply sparking concerns over why no criminal charges were brought against tax evaders.
FBR officials revealed multiple cases of sugar mills breaking rules. In one instance, a mill installed a hidden chute to redirect sugar output, which led to the authorities seizing 1,200 metric tons of sugar.
Another mill tampered with the FBR’s digital monitoring system by disconnecting its production lines. This action resulted in the authorities seizing 150 metric tons of sugar and five vehicles used for transport.
Other mills broke various compliance rules. These included not using the required Track-and-Trace System or having issues related to the installation of CCTV cameras.
Langrial told the committee that FBR would use technology and physical checks to keep watching the mills and make sure they follow tax rules.
