Islamabad: Prime Minister Shehbaz Sharif on Tuesday directed the key government agencies to act jointly to keep check on the illegal sale of sugar, tax evasion, and rising prices.
According to a statement issued by the Prime Minister’s Office, Shehbaz has directed the Federal Board of Revenue (FBR), Federal Investigation Agency (FIA) and Intelligence Bureau (IB) to ensure full recovery of general sales tax (GST) from sugar mills and dealers.
The prime minister also ordered the installation of cameras at sugar mills to monitor production and prevent hoarding, which he said would help stabilize sugar prices. Monitoring production will also support the recovery of unpaid taxes.
“No increase in the sugar price will be tolerated,” the prime minister stated, warning sugar mill owners of strict action if found guilty of hoarding or tax evasion. He also called for firm action against those manipulating prices.
Shehbaz extended these directives to other industries, including steel, cement, cigarettes, and beverages, calling for similar measures to prevent illegal practices in those sectors.
In late September, the Economic Coordination Committee (ECC) approved the export of 140,000 metric tonnes of sugar, citing stable domestic prices and surplus stocks. As of August, the government had estimated total sugar stocks at 4.8 million metric tonnes.
However, past incidents of sugar export scandals, where domestic prices rose sharply after exports were allowed, have prompted the government to take precautions. To prevent similar occurrences, the cabinet placed a cap on sugar prices to regulate exports and avoid disruptions in the domestic market.
These measures aim to protect consumers, ensure fair taxation, and stabilize the sugar market during the crucial crushing season.
