Profit statements

The collection of taxes on the sugar sector increases by 11% in 6MFY22

ISLAMABAD: The Federal Board of Revenue (FBR) collected 32.43 billion rupees in taxes on the sugar sector in the first six months of the current fiscal year compared to 29.30 billion rupees collected in the same period last year, achieving growth of 11%.

The tax department said this growth is due to the successful implementation of the Track and Trace System (TTS).

This encouraging result from digital surveillance of the sugar sector shows that TTS is making a significant contribution to the prevention of revenue losses and leading to increased revenue collection, the FBR said in a statement on Friday.

FBR had decided to implement the tracking and traceability system in the sugar sector in order to digitally monitor the production of the whole industry before the grinding season. In this regard, site surveys and factory visits were carried out in September, and Tripartite Agreements (TPAs) were signed with the 79 operational sugar factories in Punjab, Sindh and KP in October.

The process of installing the TTS equipment was undertaken in October and November, and all sugar mills across the country received applicators as well as tax stamps to be affixed to each bag of sugar. FBR had notified that no bag would be allowed out of a production site or manufacturing facility without a tax stamp and unique identification marking (UIM).

The TTS was officially inaugurated by Prime Minister Imran Khan on November 23.

In order to ensure the enforcement of the sugar bag movement with fiscal stamps, the Inland Revenue Enforcement Network (IREN) has been tasked with combating tax evasion in the sugar sector. Regional law enforcement centers across Pakistan have been tasked with carrying out raids on untaxed sugar.

Since then, more than 65 raids have been carried out by the IREN regional centers of Rawalpindi, Lahore, Faisalabad, Multan, Karachi, Hyderabad, Sukkur, Quetta and Peshawar.