The Federal Board of Revenue (FBR) has sealed two production chutes at Safina Sugar Mills in District Chiniot after identifying violations of track and trace regulations during the ongoing sugarcane crushing season 2025–26.
The action, taken on January 4, 2026, followed the mill management’s failure to install mandatory digital eye cameras and Network Video Recorder (NVR) systems on the affected chutes, as required under the Sales Tax Rules, 2006.
Enhanced monitoring of sugar production
Acting on directives of the Prime Minister of Pakistan, the FBR has rolled out an improved sugar production monitoring framework aimed at curbing tax evasion and ensuring transparency. The system includes Track and Trace Stamps, automated hopper counters, video surveillance, digital eye counting, S-Track invoicing for sugar dispatches, and the deployment of FBR staff at sugar mills.
The monitoring regime is further strengthened through integrated CCTV coverage, regular inspections by senior FBR officials, and random field checks by the Inland Revenue Enforcement Network (IREN). Authorities are also monitoring the supply chain to verify that sugar is being sold to legitimate distributors rather than hoarders.
Zero tolerance for non-compliance
According to officials, the sealed chutes at Safina Sugar Mills will remain closed until the required monitoring equipment is installed in full compliance with regulations. The move forms part of a broader enforcement drive to protect government revenue and ensure accurate reporting of sugar production and sales.
The Government of Pakistan has reiterated its zero-tolerance policy toward tax evasion in the sugar sector, stating that strict monitoring and enforcement will continue even after the crushing season to ensure legal compliance and uninterrupted sugar supply for consumers.
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