The Federal Board of Revenue (FBR) has shut down two sugar mills in central Punjab over serious breaches of tax laws, reflecting the government’s zero-tolerance policy towards fiscal non-compliance.
The enforcement action followed violations of Section 40C of the Sales Tax Act, 1990, along with Chapter XIV-B, Chapter XIV-BA and Rule 150ZQZE of the Sales Tax Rules, 2006, which mandate strict monitoring, control and compliance for the sugar sector. The FBR said the move highlights its resolve to enforce sales tax regulations in high-risk industries and to act firmly against taxpayers involved in persistent violations.
The board stressed that all enforcement steps are being taken strictly within the legal framework, ensuring transparency and due process, with the objective of safeguarding state revenue and ensuring fair competition for compliant taxpayers. It also reaffirmed its dual approach of encouraging voluntary compliance while maintaining tough enforcement against wilful breaches of tax laws.
Separately, the FBR has suspended six officials and initiated disciplinary proceedings after they were found absent from their assigned monitoring duties at sugar mills without authorisation, underscoring its uncompromising stance on misconduct and negligence. The officials had been deputed under Section 40B of the Sales Tax Act, 1990 to ensure continuous, transparent oversight of sugar production, but their absence was flagged during routine checks by the Large Tax Office (LTO) Lahore.
Given the seriousness of the lapse, LTO Lahore has recommended formal disciplinary action under relevant rules and procedures, saying immediate suspension was necessary to uphold accountability and prevent any dilution of the monitoring system.
The FBR reiterated its commitment to high standards of discipline, integrity and professionalism across its field formations and warned that dereliction of duty, misconduct or failure to perform assigned responsibilities will be dealt with strictly under the law.
