ISLAMABAD: Prime Minister has given an important task to the Secretary Ministry of Finance to identify whether tax officials are practically involved in the delay in implementation of the track-and-trace system (TTS) in notified sectors on priority basis.
Sources told Business Recorder that the Prime Minister during the last federal cabinet meeting showed dissatisfaction over the report submitted by the Tariq Bajwa-led committee on Track and Trace as it has not identified FBR officials who failed to implement the TTS.
Sources said that the PM has directed Secretary Finance Imdad Ullah Bosal to identify those behind the poor implementation of the project resulting in serious lapses and delays.
Track and trace system: PM directs removal of all legal hitches
The committee was also tasked to determine accountability for failure to integrate the tracking system throughout the supply chain.
Sources said that the FBR partially implemented TTS in Sugar, Cement, Fertiliser, and Tobacco factories.
Reportedly, the Bajwa-led committee in its findings did not find any wrongdoing in contract award; however, the committee attributed delays and poor implementation of TTS project on part of manufacturers and contractors.
Sources said that apparently problems remain with the FBR management as they did not give priority to this project.
It seems that the FBR management did not take actions against the manufacturers, even extended dates to implement the TTS, sources added.
Most of the local tobacco companies signed memorandum of understanding (MoU) with FBR but did not install the system over their production lines, whereas the multinational tobacco companies implemented the applicators over their production lines, sources added.
Sources further said that FBR went into a dispute with the consortium over granting many concessions regarding import of equipment and setup at plants against the initial design proposed by the consortium.
Meanwhile, the performance of Inland Revenue Enforcement Network (IREN) squads, which formed not only to monitor the stamping machines installed in the premises of manufacturers of specified goods but to examine and authenticate Tax Stamp, remained unsatisfactory as the enforcement teams failed to make seizure of illegal cigarette and unstamped bags of sugar, Fertilizer and cement bags across the country.
The weak enforcement by FBR, including fake stamps goods available in the market, was also highlighted by Prime Minister Shahbaz Sharif during a cabinet meeting held last Friday.
Sources said that when the PM announced the inquiry, FBR higher management directed its Regional Tax Offices (RTO) to conduct operations against illegal cigarettes and unstamped sugar and fertiliser bags.
The premier also expressed serious reservations about the lack of oversight, supervision and penalties on non-compliant manufacturers which also depicts that FBR’ track and trace, as well as, IREN squads failed in unauthorized stoppage of production of notified goods.
Recently, former Chairman FBR Shabbar Zaidi informed media interview also revealed that his government was pressurised specifically by the sugar sector not to implement the system, adding that he said that TTS can be a success only when the industries fully cooperate with the government.
Sharing details, former FBR Chairman maintained that the industry will influence the operation of the system, which is deployed at their premises.
Sources asked that how the TTS can be successful when the FBR officials as taxmen are reportedly reluctant to go after the business of powerful industry players, who are sitting in Parliament.
The cement sector was reluctant to implement TTS despite the fact that the cement factories have been given training. One production line of each unit is presently under the test phase of the TTS, sources added.
In addition, it is very important to educate the masses and the importance of TTS and how to use it to verify whether the product is original or counterfeit.
The FBR should outsource the enforcement or give the task again to Regional Tax offices (RTOs) as the tax department’ IREN squads remained unsuccessful in verification of tax stamps, sources added.
Copyright Business Recorder, 2024
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