In a damning revelation, eight sugar mills — many linked to Pakistan’s powerful political elite — have been caught red-handed in massive tax evasion schemes, cheating the national exchequer out of billions of rupees.
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The Federal Board of Revenue (FBR) admitted before the National Assembly’s Standing Committee on Finance that tax collections from the sugar sector skyrocketed only after enforcement actions exposed systemic evasion, digital manipulation, and brazen non-compliance.
Opposition Leader Omar Ayub Khan grilled FBR Chairman Rashid Mehmood Langrial during Wednesday’s meeting, demanding names of the mills involved. The FBR, after dodging for over two hours, finally handed over a sealed envelope — a gesture symbolic of the opacity and hesitation surrounding elite accountability.
While Langrial boasted of video evidence showing mills defying regulations, he failed to provide a figure for the penalties imposed. Even more damning: no criminal proceedings have yet been initiated — despite clear signs of willful fraud.
The list of violations reads like a corruption playbook:
One mill installed a secret chute to hide sugar production and dodge taxes; 1,200 metric tons of sugar were seized.
Another mill disconnected FBR’s digital monitoring system, resulting in the confiscation of 150 metric tons of sugar and five transport vehicles.
A mill refused to hand over its Network Video Recorder (NVR), leading to a full site seal.
Non-compliance with the Track-and-Trace System (TTS) was rampant, with sugar bags dispatched untagged and godowns sealed in retaliation.
Mills with faulty or deliberately sabotaged CCTV and bagging systems faced FBR crackdowns, but no prosecutions.
In one glaring case, an entire bagging section was sealed after sugar supplies were rerouted to avoid TTS surveillance. In another, mismatched bag counts and defective shooter machines suggested deliberate manipulation of output.
Despite these serious breaches, the question remains: Why is no one in jail? Why are politically-connected sugar barons being shielded while the public foots the bill?
Langrial assured the committee of continued FBR monitoring, but critics say monitoring isn’t enough — prosecution is overdue.
The sugar mafia is not just stealing tax revenue; it’s mocking the rule of law — and so far, getting away with it.
