ISLAMABAD: The Federal Board of Revenue (FBR) has seized 172 sugar bags, which were found without affixation of tax stamps in one warehouse.
According to a press statement, the Inland Revenue Enforcement Network (IREN) Squad of Directorate of Intelligence and Investigation (I&I)-IR, Hyderabad, in a major counter-tax evasion operation, has seized 172 Sugar bags, which were found without affixation of tax stamps in one warehouse.
In compliance with STGO 05 of 2021 dated 11th November 2021 issued by the Project Director, (Track and Trace System) and specific directions of Member-IR (Operations), FBR Islamabad, and Dr Amir Talpur, Director-General I&I (IR) Islamabad, the team of Directorate of I&I (IR) Hyderabad (IREN) visited area of Tower Market Hyderabad on 27th November 2021 to check sugar dealers.
The IREN team visited 12 warehouses and checked the stock of sugar bags manufactured by various sugar mills during crushing season 2021-22.
The team found sugar bags manufactured by three sugar mills including M/s Chambar Sugar Mills stocked in the premises of afore-stated dealers. The sugar bags manufactured by two sugar mills were found affixed with tax stamps.
However, stock of 172 sugar bags manufactured by one sugar mill namely M/s Chamber Sugar Mills lying in the premises of M/s Gulzar & Co, Hyderabad were found without affixing of Tax Stamps. The team seized the stock of 172 sugar bags in violation of Section 40C of the Sales Tax Act, 1990, STGO 5 of 2021, and Sales Tax Rules, 2006 for initiating legal action against M/s Chamber Sugar Mill and the dealer in accordance with the relevant provisions of law.
It is pertinent to mention that IREN teams have conducted similar raids on Sugar dealers in Lahore and Rawalpindi but found no violation as all bags of sugar were properly stamped under TTS. This, of course, is a healthy sign which reflects positively on tax compliance in the sugar sector.
FBR Chairman Dr Muhammad Ashfaq Ahmed has appreciated the raiding team led by Dr Abdul Rehman Rind. He announced special rewards for the members of the raiding squad and encouraged them to continue working with full commitment and integrity.
He also appreciated the Project Director and his enforcement drive to curb the supply of untaxed goods.
The chairman has reiterated his resolve not to allow the movement of any products of TTS-covered sectors on the roads and their sale in the market which do not bear activated tax stamps.
Member IR- Operations, FBR Islamabad Dr. Qaiser Iqbal, also appreciated the IREN staff and the Project team for their successful action in Hyderabad.
He said that it is expected that over the next few months implementation of the Track and Trace System, coupled with IREN’s valiant drive would help overcome the menace of illicit and non-tax paid sugar stock in the market and translate into maximizing the revenue potential.
Prime Minister of Pakistan inaugurated TTS on the sugar sector on 23rd November 2021 and repeatedly expressed his resolve to ensure implementation of Track and Trace System with full force and curb movement and supply of untaxed sugar stock in Pakistan.