ISLAMABAD: Prime Minister Imran Khan will inaugurate ‘Track and Trace system’ of the Federal Board of Revenue (FBR) for the sugar industry on November 23, 2021 at PM House.
The Track and Trace system will ensure electronic monitoring of manufacturing and sales of products of important sectors consisting of tobacco, fertilizers, sugar and cement.
The scope of electronic monitoring ranges from manufacturing of the products to their usage by the end-users, bringing much needed revenue for the country and preventing tax evasion in these sectors.
After rolling out electronic monitoring of tobacco sector, FBR is now implementing the 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.
PM directs to bring entire sugar stock for sale in market
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 11th November, 2021. 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 economic transactions remains 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 beverages and petroleum sector into the Track and Trace System.
Copyright Business Recorder, 2021