The report on the Suger Commission of Inquiry, which eventually made its way to the Prime Minister in its final form, has made some shocking revelations about how sugar is priced, how commodities are exported to take advantage of discounts on sales, how billions of rupees are sold by the owners of sugar mills and how many big names in both government and opposition were involved in the scam.
According to sources, the report mentions how the quantity of sugar exported to Afghanistan is regularly to show that 75 tonnes of the commodity is being exported per truck.
However, this is hardly possible, given that the maximum capacity of a truck, when overloaded, does not exceed 30 tons.
There are several ways by which the Suger mafia can profit from overexaggerating the transport commodity exports to Afghanistan. For one, billions of rupees in subsidies are received from the government for export. Secondly, the more the exports are shown on paper, the more sales tax exemption the sugar mill owner can claim.
This scam also has another purpose 'money' if the sugar is being exported to Afghanistan, the payment must also be from the same country.
However, it was found by the commission that many sugar mill owners were receiving telegraphic transfers from the US and Dubai to pay for sugar sold to Afghanistan, so it was possible to white out money and earn dollars at the same time.
Another important finding in the report is that the sugar mills have given the government of Pakistan an estimated Rs. 22 billion, but out of that total amount of Rs. 12 billion was reclaimed in rebate. Therefore, the net contribution is about Rs. 10 billion.
And that was not all because the government paid Rs29 billion in subsidies to the sugar mill owners. Round off, the government was actually giving Rs 20 billion to the mill owners to run their already profitable sugar mills.
The Commission also found that the pre-mill sugar price set for sugar by the people in charge of regulation was not subject to proper scrutiny and equilibrium and was also possibly the highest in the regulatory scandal.
The association of the sugar mills would most of the time decide the price without value, which was due to a conflict of interests. Investigation revealed that the price of sugar was over Rs 15-30 per kg in years.
The price of sugar was more than Rs 20 per kg this year, meaning the public should have paid more than Rs 20 for sugar.
The investigation has revealed that for every R1 acquired by the sugar mafia, it is up to the owners of the sugar mills to pay Rs. Was over 5 billion.
Another discrepancy discovered by the Suger Commission of Inquiry was that although mill owners are believed to sell sugar to brokers and receive payment in return, the brokers not only sold sugar, but they were also paid by the very owners of the sugar mills they were selling to.
It is believed that at times, sugar brokers had their own front of sugar mills and did not regulate those individuals who are under the tax net. The commission alleges that in this exchange of money, many illegal activities like money laundering were being facilitated by brokers.
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