ISLAMABAD: The Federal Board of Revenue (FBR) has informed that Prime Minister Imran Khan would inaugurate the ‘Track and Trace’ system’ for the sugar industry on November 23.
The Track and Trace system would ensure electronic monitoring of manufacturing and sales of products of important sectors consisting of tobacco, fertilizers, sugar and cement, said a press release issued by FBR here.
The scope of electronic monitoring ranges from manufacturing of the products to its usage by the end-users, thus bringing much-needed revenue for the country and preventing tax evasion in these sectors.
After rolling out electronic monitoring of the tobacco sector, FBR is now implementing a Track and Trace System in the next significant sugar sector which will be followed by the remaining sectors.
In this regard, FBR has already issued Sales Tax General Order No-5 vide powers conferred under Section 40C (2) of the Sales Tax Act-1990 and Rule 150 ZF of the Sales Tax Rules-2006.
The said STGO ordains that no sugar bag will be allowed to move out of a production site, factory premises or manufacturing plant without affixation of activated stamps/Unique Identification Marking (UIMs) with effect from November 11.
The Stamps/Unique Identification Markings (UIMs) are to be obtained/procured from FBR’s Licensee Ms. AJCL/MITAS/Authentix Consortium. The provisions of Section 40C (2) of the Sales Tax Act-1990 read with Rule 150 ZF of the Sales Tax Rules-2006 mandate FBR to notify the date for the implementation of Electronic Monitoring of Production and Sales of goods in the manner prescribed in the law on all manufacturing sites of notified sectors.
It is pertinent to mention that automation of processes and digitization of the economic transactions remain at the heart of the FBR’s larger vision.
FBR is vigorously moving from manual systems to automated technology, which is set to bring a commendable revolutionary change in the taxation system.
The Track and Trace System and many other similar initiatives and interventions are meant to increase revenues, promote transparency and thereby maximize tax compliance in Pakistan.
In the next phase, FBR is planning to cover the Beverages and Petroleum sector into the Track and Trace System.