The Federal Board of Revenue (FBR) is all set to check tax evasion of billions of rupees in four major sectors namely; sugar, tobacco, cement, and fertilisers. In this regard, FBR launches a track and trace system that will end the sale of cigarettes, sugar, cement, and fertiliser products without a tax stamp.
FBR launches track and trace system to curb tax evasion
Federal Minister for Finance & Revenue Shaukat Tarin inaugurated the Track & Trace System at Pakistan Tobacco Company, Jhelum. He said; “TTS is a very comprehensive and robust electronic monitoring system, which is a paradigm shift from the conventional physical monitoring system. It is believed that installation of the Track and Trace System (TTS) in the notified sectors would be a game-changer for improving revenue and curbing counterfeit products in the market.”
Prime Minister, Imran Khan lauded FBR’s efforts in a tweet, that reads; “It will boost additional revenue, digitise the economy, curb counterfeiting — all steps towards effective and transparent governance system.” The track and trace system aims to prevent the leakage of revenue, under-reporting of production and sales, and to ensure proper payment of Federal Excise Duty and Sales Tax on the manufacture and sale of specified goods.
More good news: FBR has successfully launched its Track & Trace System. It will help boost additional revenue, digitise the economy, curb counterfeiting — all steps towards effective & transparent governance.
— Imran Khan (@ImranKhanPTI) October 1, 2021
The implementation of TTS
The tax evasion in the tobacco sector alone is estimated to be around Rs200 billion that results in inflation of prices of commodities of everyday use. The newly launched track and trace system(TTS) will halt the sale of cigarettes, sugar, cement, and fertiliser in the market without having tax stamps. Although, FBR would not penalise the sugar mill owners or dealers if the tax stamps on sugar bags were found to be damaged. In case the system fails then QR codes would be printed on the bags.
The FBR has already directed sugar mills to start the process of installation of the track and trace system at the manufacturing premises of sugar factories. The tax collection body will notify a date after implementation of the track and trace system. FBR’s official website states; “TTS will reduce counterfeiting and prevent the smuggling of illicit goods through the implementation of a robust, nationwide, electronic monitoring system of production volumes and by the affixation of more than 5 billion tax stamps on various products at the production stage, which will enable FBR to track the goods throughout the supply chain.”
Source: ARY News