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The Federal Board of Revenue (FBR) Tuesday clarified that the FBR has decided to initiate panel audit of sugar industry under section 32A of the of the Sales Tax Act,1990 to improve tax compliance and ensure transparency in reporting mechanism.

According to the FBR, this clarification is being issued in response to a reported news in respect of monitoring exercise being conducted by FBR at various sugar mills across Pakistan. The impression transpiring from the news item leads to some misconception of tax evasion/fraudulent activities by some sugar mills.

It is clarified that investigative audit has nothing to do with any tax evasion unearthed in sugar industry, FBR said.

It is further clarified that FBR has decided to initiate panel audit of sugar industry under section 32A of the of the Sales Tax Act,1990 in order to improve tax compliance and ensure transparency in reporting mechanism.

The FBR believes in improving compliance through educating, facilitating and transparent and fair application of law, FBR added.

Copyright Business Recorder, 2019

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