FBR launches electronic monitoring of sugar production

KARACHI: The Federal Board of Revenue (FBR) has launched electronic monitoring of sugar production and supply to prevent tax evasion.

The FBR banned the removal of sugar bags from mills without affixation of tax stamps/unique identification marking (UIMs). The condition is applicable from November 11, 2021. The monitoring has been launched for sugar crushing season 2021/22.

In this regard, the revenue body has issued Sales Tax General Order (STGO) No 05 of 2021-2022.

The FBR said the sugar bags must have tax stamps, which are to be procured from the FBR’s licensee AJCL/MITAS/Authentix Consortium.

The FBR through a notification on February 26, 2019 issued rules for the implementation of track and trace system.

Further, in March 11, 2021, the revenue board issued a Sales Tax General Order (STGO) to notify the monitoring system.

The FBR also said that all sugar products manufacturers are warranted under the law to make necessary arrangements for importation of application and other equipment required for successful installation and implementation of track and trace system at their production facilities.

Sources in the revenue board said the electronic monitoring would help the FBR record actual quantity of sugar production and the utilisation of raw materials by the sugar mill-owners.

The sources said the FBR would get the data of online monitoring from the sugar mills when they commence purchasing sugarcane from growers and start production of sugar products and subsequent selling to their dealers.

The FBR plans online monitoring of production lines of five sectors, including tobacco products, beverages, sugar, fertiliser and cement.