ISLAMABAD: The implementation of the track and trace system at the cement manufacturers has been delayed for the next few months till all equipment, specifically applicators are become operational at the manufacturing premises.

Sources told Business Recorder that the track and trace system has become operational at the fertiliser units, but it has less significance due to sales tax exemption on fertilisers. On the other hand, the applicators are needed to be installed at cement manufacturing plants. Once the applicators are installed, the system of track and trace would become fully operational.

According to sources, the system is expected to become fully functional at the cement plants by the end of the current quarter (January-March) 2022-23. The deadline for the implementation of the track and trace system was July 1, 2022, for the cement sector.

Under the Federal Board of Revenue (FBR) Rules, all assets (tangible/ intangible including applicators) and services that are required for the affixation of unique identification markings/stamps including installation, operation, and maintenance, will be the responsibility and at the cost of the licensee during the term of the licence. The assets installed by the licensee for the purpose of track and trace system shall belong to the licensee.

The core material of the unique identification markings must be made of a non-removable anti-tampering substrate so that the composition of the stamp reveals evidence of any attempt to tamper or stamp remove or crumbling of considerable portions of the stamp. The size of the stamp should be compatible with most label applicators in the market, the FBR Rules added.

The system will result in digital monitoring of the large-scale manufacturing and production of these key sectors. Besides, preventing revenue leakages, it will help in minimising human intervention and thus pave the way for a transparent and reliable tax compliance system across the country, they added.

Copyright Business Recorder, 2023