ISLAMABAD-The federal government has barred Pakistan Sugar Mills Association (PSMA) from allocating the export quota to 12 sugar mills, owing to non-filing of sales tax returns, it was learnt reliably here.
A total of 57 sugar mills have been allowed to export sugar from the allowed quota, official source told The Nation. However, 12 of the sugar mills have been barred from the export due to non-filling of sales tax returns, the source added. The Federal Board of Revenue (FBR) has asked Pakistan Sugar Mills Association (PSMA) to allocate the export quota to 57 sales tax filler sugar mills only, said the source. It is worth mentioning here that in December last year, the federal government had allowed export of 100,000MT of sugar to Pakistan Sugar Mills Association (PSMA) for further distributions to those sugar mills which are filing their tax returns. 
In its meeting held on January 3, 2023, the Economic Coordination Committee (ECC) of the Cabinet had further enhanced the export quota to 250,000 MT. It was also decided by the ECC that the total quantity of export should be distributed among provinces based on their installed crushing capacity to be determined by the PSMA. It was further decided that the export would also be subject to the condition that proceeds in dollars would be recovered from sugar exporters within 60 days from when the letters of credit are opened. Now, through a fresh directive, the FBR has barred the non-filers from the exports of sugar. The list of tax return filers’ sugar mills has been forwarded to all the stakeholders with the instructions that export of sugar from the approved quota shall only be allowed to the tax filer mills. The sugar mills that have been barred from export include Bawany Sugar Mills Limited(SML), Dewan SML, Matiari SML, Naudero Sugar Mills (Private) Limited, Tando Allayar Sugar Mills (Private) Limited, Tariq Corporation Limited, Tandlianwala SML, Chanar SML, Abdullah SML, Haq Bahu Sugar Mills (Pvt) Limited, Allaince SML, and Khazana Sugar Mills (Pvt) Limited. The federal government had last year allowed PSMA the export of 100000 MT of sugar, after Sugar Mills Association had conditioned the start of the sugarcane crushing in the country to export permits.