The Federal Board of Revenue (FBR) has taken strict action against several Inland Revenue officials who were involved in helping sugar mills evade taxes. These officials were working with sugar mills to avoid paying sales tax and federal excise duty. As a result, the FBR has suspended nine officials working in different Regional Tax Offices across Pakistan.
Officials Suspended for Malpractices
The suspended officials were working in various regions, including Karachi, Hyderabad, Sukkur, Lahore, and Faisalabad. According to the FBR notification, these officials have been suspended for 120 days or until further notice, in accordance with Rule 5(1) of Civil Servants (Efficiency & Discipline) Rules, 2020. The suspension is a result of their involvement in malpractice and working in connivance with the sugar mills.
Names of Suspended Officials
| Name | Position/Grade | Regional Tax Office Location |
|---|---|---|
| Muhammad Mohsin Khan | Inland Revenue Officer | Karachi |
| Arshad Mahmood | Inland Revenue Officer | Karachi |
| Ubaidullah Buksh | Inspector-IR | Hyderabad |
| Sarfraz Ahmad | Office Superintendent | Faisalabad |
| Munir-ul-Haq | Senior Auditor | Hyderabad |
| Zulfiqar Ali Magsi | Inspector-IR | Sukkur |
| Muhammad Arslan Yaqoob | UDC | Lahore |
| Syed Mansoor Hussain Yousifzai | UDC | Hyderabad |
| Saqlain Haider | LDC | Faisalabad |
FBR Efforts to Control Tax Evasion in Sugar Mills
FBR’s crackdown on tax evasion by sugar mills has been part of its ongoing efforts to strengthen tax compliance in the country. The sugar sector has been notorious for tax evasion, and the FBR is determined to take strict action against any illegal activities.
Smuggling of sugar was a major issue. However, due to permanent postings of FBR staff during the previous season, smuggling was controlled, leading to a reduction in sugar prices and preventing hoarding. This resulted in adequate sugar supply, which was beneficial for the public.
Why Are These Suspensions Important?
The suspensions of these FBR officials are crucial as they show that the government is committed to enforcing the tax laws and cracking down on corruption within its own ranks. The FBR has emphasized that these actions are based on credible reports from monitoring agencies, and the authorities are committed to ensuring transparency and accountability.
FBR Increased Monitoring of the Sugar Sector
The FBR has been working to ensure that sugar mills comply with sales tax and federal excise duties in the current season (2024-25). The suspension of these officials is part of FBR’s larger strategy to increase oversight and control in the sugar industry. FBR aims to minimize tax evasion and ensure that all mills pay their due share of taxes.
Action Against Corruption and Tax Evasion
The FBR’s decision to suspend these officials also highlights its efforts to fight corruption within the tax system. By taking action against officials involved in illegal activities, the FBR is sending a strong message that such malpractices will not be tolerated. This is expected to encourage taxpayer confidence and improve the overall tax collection process.
FBR Future Actions
The FBR has made it clear that it will continue its efforts to ensure full compliance with tax laws across Pakistan. The suspension of these nine officials is just one part of its larger strategy to hold public servants accountable for their actions. The FBR is committed to improving tax transparency and preventing any form of corruption in the sector.
Summary
The suspension of these nine Inland Revenue officials by FBR serves as a reminder that the government is actively fighting tax evasion and corruption in the sugar industry. With intensified efforts in the 2024-25 season, the FBR aims to ensure that all sugar mills comply with tax regulations, improving the country’s overall tax system and economic stability.
By suspending these officials, FBR is not only fighting corruption but also sending a message of accountability, encouraging the public to trust in the tax system once again.
