- The Federal Board of Revenue (FBR) in Pakistan has taken action against sugar millers for under-declaring the value of sugar to evade sales tax.
- The Large Taxpayers Office (LTO) found that many millers had quoted lower prices for sugar, resulting in lower sales tax collection.
- The official prices quoted by the Pakistan Bureau of Statistics (PBS) were significantly higher than the prices declared by the millers.
- Sales tax on sugar was regulated through a Statutory Regulatory Order (SRO) which set the minimum value for taxation purposes, but this was challenged in court by the millers.
- The court suspended the SRO and directed the FBR to find a reasonable solution, leading to a surge in sugar prices.
- The sugar mills allegedly took advantage of the situation and deducted sales tax based on the lower declared price.
- The LTO Karachi has issued notices to recover the underpaid sales tax amounts, but the millers have contested the FBR’s authority.
- The LTO Karachi has formed a committee to determine the value of sugar and ensure the recovery of underpaid sales tax.
- This action is expected to generate approximately Rs 900 million for the national exchequer.
- The FBR’s efforts to address under-declaration and tax evasion in the sugar industry are part of a broader initiative to enhance revenue collection and ensure tax compliance in Pakistan.
Source: pkrevenue.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
