FBR rolls out digital eye to monitor sugar mills

The Federal Board of Revenue (FBR) has launched a new initiative to monitor sugar mill production through digital surveillance, replacing the previous track and trace system.

This initiative aims to ensure real-time monitoring of sugar production to prevent tax evasion and unreported production in the sector. The system includes five main monitoring tools: track and trace stamps, automated bag counters at hoppers, video surveillance, digital eye analytics, and track invoicing systems. 

In addition, Inland Revenue officers will be assigned to monitor operations at the mills, supported by CCTV cameras and random checks conducted by the Inland Revenue Enforcement Network. The FBR will also work with the Federal Investigation Agency (FIA), Intelligence Bureau (IB), police, and Pakistan Rangers to ensure compliance and prevent illegal activities.

This action follows increased scrutiny of the sugar industry due to concerns over tax evasion and unaccounted production. Several mills in Sindh and Punjab were shut down for violating regulations. Despite the installation of previous systems, problems like fake track-and-trace stamps and undocumented dispatches persisted. The new measures are aimed at closing these gaps.

The FBR’s objective is to improve tax collection, prevent price manipulation, and stabilize the sugar market, particularly during the high-production November-March crushing season. Meanwhile, Minister for Planning, Ahsan Iqbal, has called for a medium-term framework to deregulate the sugar industry. He stressed the need for consistent data, crop zoning, and backward integration to enhance the industry’s efficiency.