The Federal Board of Revenue (FBR) has imposed Section 40-B of the Sales Tax Act, 1990, to post staff on the business premises of stone crushers in district Sargodha and coal mines in district Khushab.
Both sectors are generating huge economic activity in the region by supplying crushed stone and coal throughout the country. However, their share in the payment of taxes is dismally negligible. Special teams have been formed by Mr. Dr. Faheem Mohammad, Chief Commissioner, Inland Revenue Regional Tax Office, Sargodha, in order to monitor actual production and supplies.A total of 16 teams headed by Deputy Commissioner Inland Revenue, Mr. Ali Saleh Hayat Kalyar, and twenty-two teams headed by Deputy Commissioner Inland Revenue, Mr. Chaudhary Naeem, have been posted at stone crushing plants and coal mines, respectively.
It is very important to mention here that both sectors have not paid the due sales tax for many years. As per information received from FESCO authorities, the stone crushing sector consumed 92 million units of electricity in 2022–23, which corresponds to an estimated production of crush stones valued at Rs. 50 billion.
As a result, Rs. 10 billion in sales tax is being evaded by this sector. In the coal sector, there is a significant volume of fake and flying invoices, causing millions of rupees in revenue loss to the national exchequer.
The FBR authorities have taken cognizance of these illegal acts and initiated proceedings against criminal elements to bring them behind bars very soon. It may be worth mentioning that tax authorities engaged stakeholders through meetings and awareness campaigns to convince them to pay taxes voluntarily, which unfortunately didn’t prove effective. Despite all odds, the Federal Board of Revenue is determined to collect due taxes by all legal means available and is set to contribute to the development of the country through enhanced revenue.
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