The Federal Board of Revenue (FBR) has collected Rs26.5 billion sales tax from sugar sector through Track and Trace System (TTS), registering a growth of 33 percent in first four months of current crushing season.
The Federal Board of Revenue (FBR) has achieved one more milestone through the successful implementation of the Track and Trace System (TTS) on the sugar sector during the current crushing season. said a press release issued by FBR here on Saturday.
The innovative digital monitoring system of sugar production has been implemented over 79 sugar mills, having 151 production lines nationwide.
It is pertinent to mention that Prime Minister Imran Khan had himself launched TTS on 23rd November 2021 on the sugar sector. Thereafter, no sugar bags were allowed to be removed from the factory premises and sold in the market without tax stamps.
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Owing to this transparent electronic monitoring of production, all sugar mills had to declare their actual crushing and production during the current crushing season.
As a result of this digital intervention, the sugar mills have produced record high sugar i.e. 7.51 million tons (up to 24.03.2022) as against 5.63 million tons produced during the last crushing season, showing an increase of 34 percent.
Likewise, FBR has collected sales tax amounting to Rs26.5 billion in the first four months (i.e. December 2021 to March 2022) of the current crushing season as against Rs19.9 billion collected during the corresponding period in the last crushing season, registering an increase of Rs6.59 billion which comes to 33 percent growth.
In addition, Inland Revenue Enforcement Network (IREN) Squads of FBR, in a counter-evasion operation, conducted more than 60 raids in various markets throughout the country to ensure a successful implementation of the Track and Trace System. During the operation, the unstamped bags were seized by FBR officials as per law and procedure, which were being sold without tax stamps.
Federal Minister for Finance and Revenue, Shaukat Tarin has commended FBR for the successful implementation of the Track and Trace System which has made Pakistan a sugar surplus country, once more.
Likewise, Chairman FBR Dr Muhammad Ashfaq Ahmed has also appreciated the performance of the Track and Trace System.
He further reiterated that over the next few months, implementation of the Track and Trace System on the entire Tobacco Sector as well as on other important sectors like fertilizers, petroleum, and the cement will be ensured.
It will result in digital monitoring of the large-scale manufacturing and production of these key sectors. Besides, preventing revenue leakages, it will also help in minimizing human intervention and thus pave the way for a transparent and reliable tax compliance system across the country, he concluded.