Prime Minister Muhammad Shehbaz Sharif’s ongoing focus on enhancing revenue collection is commendable and his remarks during a meeting on Saturday regarding how to address tax evasion in sugar industry highlight government’s commitment to check such financial irregularities.
The installation of video analytics in sugar mills is a game-changing approach. By monitoring production closely, the FBR can now track exact output and sales figures, thus putting an end to exploitative practices that have long plagued the industry, ensuring fairer pricing and more accurate taxation. The recent success of the FBR in recovering millions of rupees from errant sugar mills serves as a testament to the efficacy of this new approach. Such recoveries are critical for national economy, helping to bridge gap between revenue requirements and country’s financial resources.
The Prime Minister’s directive to take strict action against non-compliance is also significant. For too long, some sugar mills have exploited loopholes to avoid paying their fair share of taxes that ultimately harms national exchequer and the public. Tax evasion in any sector be it sugar or otherwise, should not be tolerated under any circumstances. Hence, government’s resolve for indiscriminate action against such practices will go a long way in restoring fairness and equity in the system.
Such actions are just not necessary for enhancing revenue collection but also vital for ensuring a level playing field for businesses that comply with the law. However, while these technological advances in monitoring production are essential, government must also pay attention to challenges being faced by sugarcane growers. Often these farmers do not receive timely payments for their crops that put them in a vulnerable position. A mechanism should be developed to ensure that sugarcane growers are paid promptly and fairly for their produce, so that benefits of these reforms are felt across the entire sugar industry value chain.
