ISLAMABAD: The Federal Board of Revenue (FBR) Thursday imposed a ban on all sugar mills for removing sugar bags from factories/production sites/manufacturing plants without affixation of tax stamps/unique identification marking (UIMs).

The FBR has implemented the enforcement measure through issuance of Sales Tax General Order 5 of 2021, Thursday.

Sugar mills are bound to only obtain tax stamps/UIMs only from the FBR’s Licensee M/s AJCL/MITAS/Authentix Consortium.

According to the sources, the decision would only be applicable on new stocks of sugar under current crushing season. However, the decision would not be applicable on the old stocks being cleared from the factories.

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According to the FBR’s order, the order has been issued for the implementation of Track and Trace System under SRO 250/2019.

The provisions of Section 40C(2) of the Sales Tax Act, 1990 read with Rule 150ZF of the Sales Tax Rules, 2006 mandate the FBR to notify the date for the implementation of electronic monitoring of production and sales of goods in the manner prescribed in the law on all manufacturing sites of notified sectors.

In exercise of the powers conferred under Section 40C(2) of the Sales tax Act, 1990 and Rule 150ZF of the Sales Tax Rules, 2006, it is hereby notified that no sugar bags shall be allowed to be removed from a production site, factory premises or manufacturing plant without affixation of tax stamps/UIMs with effect from November 11, 2021, which are to be obtained/procured from the FBR’s Licensee M/s AJCL/MITAS/Authentix Consortium. This issues with the approval of the competent authority, member Inland Revenue Operations, FBR, Islamabad, the FBR added.

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