ISLAMABAD: The Federal Board of Revenue (FBR) has directed sugar mills to start the process of installation of the track and trace system at the manufacturing premises of sugar factories.

Sources told Business Recorder that the sugar and tobacco sectors remained the top priority of the FBR for installation of the track and trace system. The Sindh High Court (SHC) has dismissed the civil suit of M/s SICPA against the award of track and trace system contract granted to the M/s AJCL consortium.

Following the release of the judgement of the SHC (Suit No583 of 2021), the FBR has resumed the process of installation of track and trace system at the manufacturing premises of tobacco products, cement, sugar, and fertilisers. The 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.

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 fertiliser 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 fertiliser 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.

Copyright Business Recorder, 2021