PM orders crackdown on sugar hoarders

Prime Minister Shehbaz Sharif on Tuesday directed the Federal Board of Revenue, Federal Investigation Agency and Intelligence Bureau to carry out joint action to curb the undocumented sale of sugar, tax evasion and price hikes.

According to a statement issued by the PM Office, the prime minister directed to ensure full recovery of general sales tax (GST) in a major decision about the sugar mills and sugar-dealers as the crushing season was about to start.

He instructed the authorities concerned to install cameras at the sugar mills to check sugar hoarding to help maintain the prices. It will also help recover the sales tax by monitoring the mills' production process and checking the hoarding.

The prime minister warned of strict action against the owners of sugar mills found involved in sugar hoarding and tax evasion. "No increase in the sugar price will be tolerated," the prime minister said and called for strict action against the "speculation mafia."

He also instructed the government agencies to take similar actions in steel, cigarettes, cement, beverages and other sectors.

It is pertinent to mention that the Economic Coordination Committee (ECC) of the Cabinet had approved the export of 140,000 metric tonnes of sugar in late September, citing stable domestic prices and surplus stocks until the next crushing season. In August, the government had estimated total sugar stocks at 4.8 million metric tonnes.

In the past, there had been several sugar export scandals where the price of sugar in the domestic market shot up soon after the government allowed exports.

Keeping in view of the past instance, the cabinet had placed a price cap on sugar to regulate its export in a bid to avoid manipulation of domestic prices.