Islamabad (PNI) Inland Revenue Enforcement Network (IREN) Squad of Directorate of Intelligence & 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 of STGO 05 of 2021 dated 11th November, 2021 issued by Project Director, (Track & 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 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 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 Sugar Sector.
Dr. Muhammad Ashfaq Ahmed, Chairman, FBR has appreciated the raiding team led by Dr. Abdul Rehman Rind. He announced special reward for the members of the raiding squad and encouraged them to continue working with full commitment and integrity. He also appreciated Project Director and his enforcement drive to curb supply of untaxed goods.
It is further added that Prime Minister of Pakistan had recently inaugurated TTS on 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. Chairman FBR has re-iterated his resolve not to allow movement of any products of TTS-covered sectors on the roads and their sale in the market which do not bear activated tax stamps.
Dr. Qaiser Iqbal, Member IR- Operations, FBR Islamabad 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 Track & 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.
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