Karachi: The Federal Board of Revenue (FBR) is looking to recover PKR 2 billion in evaded tax money, a news source reported. The agency suspects that some sugar mills dodged tax collection through suppression of sales.
The revenue authority recovered around PKR 500 million from a sugar mill recently. Notices have been sent to another five sugar mills for an unpaid tax figure of PKR 1.5 billion.
Large Taxpayer Unit (LTU) Karachi began examination of the records of sugar mills last month. This came as part of FBR’s drive against tax concealment. The collection of sales tax fell by 15% during the last fiscal year. It fell from PKR 23.45 billion to PR 19.87 billion, despite record production activity.
FBR’s LTU plans to continue monitoring of supplies and purchases by sugar mills. This oversight is being conducted under Section 408 of the Sales Tax Act, 1990.
