The Federal Board of Revenue (FBR) has sealed Digri Sugar Mills, located in Mirpur Khas’ Digri Tehsil, due to alleged violations of tax regulations. According to sources, the mill owners failed to comply with the FBR’s Track and Trace System during the ongoing crushing season. Reports suggest that monitoring software installed inside the mills was deliberately shut down to disrupt the FBR’s electronic monitoring system.
Acting on instructions from Karachi FBR, officials from the Hyderabad region conducted the operation and sealed the mills. However, unnamed members of the mill’s management admitted that the camera monitoring system inside the facility was not functioning due to technical issues. The system was later repaired, and Digri Sugar Mills resumed operations after a three-day closure.
A month earlier, farmers staged a protest outside Digri Sugar Mills, demanding payments for outstanding dues from the previous year. Instead of addressing their concerns, the mills management filed a legal case against local government officials, claiming that the protests caused losses of approximately PKR 360 million. The case is still under trial, with the next hearing scheduled for December 10.
Sources allege that the mill has not only failed to clear farmers’ dues but is also actively seeking ways to evade taxes. The most recent example is the reported shutdown of the FBR’s Track and Trace System.
The Track and Trace System, launched on July 1, 2021, is a nationwide electronic monitoring initiative aimed at ensuring compliance and enhancing tax collection. It involves affixing billions of tax stamps or barcodes on various products at the production stage, enabling the FBR to track goods throughout the supply chain. The system has been implemented in industries such as tobacco, cement, sugar, fertilizer, beverages, petroleum products, and steel, with the objective of increasing tax revenue, reducing counterfeit products, and curbing the smuggling of illicit goods.
The recent actions by FBR highlight the critical role of the Track and Trace System in maintaining transparency and accountability in Pakistan’s industries. Digri Sugar Mills’ non-compliance underscores the challenges faced in implementing this system effectively. If resolved, these measures could pave the way for improved governance and economic growth in the country.