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ISLAMABAD: The federal Board of Revenue (FBR) will notify a date after implementation of the “track and trace system” to put an end to the sale of cigarettes, sugar, cement, and fertiliser products without a tax stamp.

Sources told Business Recorder here on Thursday that the FBR will confiscate the cigarettes, sugar, cement and fertiliser without the tax stamps from the market.

Through a notification, the FBR will notify the date after implementation of the Track and Trace system in the coming months.

The manufacturers would not be able to sell cigarettes, sugar, cement and fertilizer in the market without having Tax Stamps after proper implementation of the system in the country.

Only a product sold in the market without a Tax Stamp would be confiscated.

In order to prevent leakage of federal tax revenue and under-reporting of production and sales of tobacco, cement, sugar and fertilizer products and to ensure proper payment of duties/taxes on the manufacture and sale of these goods, the FBR is mandated to licence the development, implementation, operation and maintenance of a track and trace system.

According to sources, the FBR will issue the evaluation report containing the names of the successful bidders of the Track and Trace system after completion of the process by the licencing committee.

The FBR will start the contract negotiations with the successful bidder having the highest score in terms of financial/technical for awarding of the contract.

The scoring of presented and compliant technical proposals shall be executed by the FBR through the review, the quantitative and qualitative evaluation of technical proposals. The scoring of presented and compliant financial/price proposals shall be done by the FBR using a mathematical formula.

Later, the implementation phase of the Track and Trace would start.

The system must enable the FBR to monitor production activities of the concerned production lines, factory premises and designated import stations; generate near real-time information about volumes of the goods produced at the manufacturing lines; obtain validated information during manufacturing that will support the correct collection of applicable taxes levied on the goods and collect validated inputs at manufacturing for determination of the origin and legal status of the goods after manufacturing.

Copyright Business Recorder, 2021

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