Taxation

FBR Reports Major Rise in Tax Collection from Sugar and Cement Sectors

The Federal Board of Revenue has reported a significant jump in tax receipts from the sugar and cement sectors, stating that improved oversight tools such as the track and trace system and real-time video monitoring helped generate more than Rs52 billion in additional revenue between November 2024 and September 2025.

According to official data, tax collection from the sugar sector alone increased by Rs35.2 billion, reaching Rs144.3 billion during the review period. This marked a substantial rise compared to the Rs109 billion collected over the same months last year. The revenue consisted of sales tax and federal excise duty, with price monitoring contributing Rs16.8 billion and production monitoring generating another Rs18.4 billion. Officials said the results highlight the effectiveness of systems installed to improve transparency and curb tax evasion.

The FBR further estimated that the sugar industry could add nearly Rs75 billion in revenue during the 2026 fiscal year due to strengthened oversight measures.

The cement sector also posted strong growth, recording a Rs17 billion increase in tax receipts between June and September 2025. Compared to Rs62.7 billion last year, the sector contributed Rs91.4 billion during the same four-month period. On a yearly basis, the FBR expects cement sector revenue to reach Rs102 billion by the close of the fiscal year.

To maintain compliance, the FBR has made video analytics monitoring mandatory for sugar mills and instructed owners to install surveillance and tracking systems ahead of the crushing season. In the cement sector, electronic tracking has been enforced, and the sale or delivery of cement bags without tax stamps or unique identification markings has been prohibited effective November 1.