Pakistan tax authority raids sugar mills in crackdown on alleged tax evasion

Pakistan’s tax collection body — the Federal Board of Revenue (FBR) — has taken enforcement action against seven sugar mills for alleged tax evasion and violations of the track-and-trace system, stepping up regulatory oversight of one of the most politically sensitive sectors.

FBR Chairman Rashid Langrial disclosed the actions on Wednesday during a briefing to the National Assembly Standing Committee on Finance and Revenue. The raids uncovered concealed production lines, missing surveillance systems, and unauthorized sugar dispatches.

Sarkand Sugar Mill was found operating a hidden chute to divert sugar output, bypassing official monitoring. Authorities sealed the chute and confiscated 1,200 metric tons of undeclared sugar, Langrial said.

At Chamber Sugar Mill, production lines were disconnected from the digital monitoring infrastructure, leading the FBR to seize 150 metric tons of untaxed sugar and impound five transport vehicles.

Digri Sugar Mill was completely sealed after failing to provide custody of its video surveillance system, a key compliance requirement under the FBR’s monitoring framework.

In another case, Jauharabad Sugar Mill was found dispatching sugar bags without mandatory TTS stamps. The FBR responded by sealing storage facilities and launching a stock audit.

Tandlianwala Sugar Mill was cited for surveillance failures, including incomplete CCTV coverage and malfunctioning automated bagging machines, known as shooters. The weighbridge and defective shooter were sealed.

Almoiz Industries Unit-2 allegedly diverted sugar supplies to areas beyond TTS coverage. Authorities sealed its entire bagging zone.

Tariq Corporation in Jaranwala also faced enforcement after discrepancies were found in bag-count data and errors in shooter systems.