MULTAN: In a move to enhance transparency and curb tax evasion, the Federal Board of Revenue (FBR) has introduced a new video surveillance and digital monitoring system to oversee production at all operational sugar mills in Pakistan. This decision follows the failure of the earlier track-and-trace system and has been notified through S.R.O.2082 (l)2024, amending the Sales Tax Rules of 2006.
South Punjab, known for its significant contribution to Pakistan’s sugar industry, hosts several of the country’s 80 operational sugar mills. These mills play a pivotal role in local sugar production, as well as the export of molasses and ethanol, which bolster Pakistan’s foreign exchange reserves.
Under the new system, all sugar mills in South Punjab will be equipped with video surveillance and digital eye solutions. The system allows the FBR, its Directorate of Intelligence, and local tax offices to monitor and record production activities in real-time from remote locations.
Enhanced Monitoring Measures in South Punjab: In addition to digital surveillance, the FBR has implemented five oversight systems to ensure transparency in sugar production and sales. These include:
1. Track and Trace Stamps: Applied to track sugar bags.
2. Automated Counters: Installed at hoppers for bag counting.
3. Video Recording and Digital Eye Counting: To monitor production activities.
4. Track Invoicing System: For all sugar dispatches.
5. On-Site Monitoring Staff: FBR personnel stationed at mills for direct oversight.
The entire process is supervised by teams from the Federal Investigation Agency (FIA) and Intelligence Bureau (IB), with additional support from law enforcement agencies, including police and Pakistan Rangers, to ensure seamless implementation.
South Punjab’s sugar industry has often faced challenges related to alleged tax evasion and unregulated sales. With the new digital surveillance system, stakeholders anticipate a significant reduction in such issues, promoting a fairer market for both producers and consumers. The initiative also aims to improve revenue collection, ultimately benefiting the national economy.
Local stakeholders, including sugar mill owners in Multan, Rahim Yar Khan, and Bahawalpur, have expressed mixed reactions. While some see this as an opportunity to improve transparency and enhance the industry’s global reputation, others are concerned about potential disruptions during the system’s implementation.
The FBR has assured mill owners of its commitment to ensure smooth operations while maintaining strict oversight. Frequent visits by senior officers and random checks by the Inland Revenue Enforcement Network will further strengthen the system’s efficacy.
The new surveillance initiative is expected to commence soon, with the FBR issuing a specific date for implementation. South Punjab’s sugar industry, a cornerstone of the region’s economy, stands at the forefront of this transformative approach, promising a more transparent and regulated future.
