ISLAMABAD: The Federal Board of Revenue (FBR) is all set to roll out the much-awaited Track and Trace System during coming 1-2 months to check tax evasion of billions of rupees in four major sectors including sugar, tobacco, cement, and fertilisers.
Well-placed sources in the FBR said that the teams of the licenses are under the process of physical surveys of the sugar mills situated at various regions before installation and equipment and machines of the track and trace system.
The system would be launched as per vision of Prime Minister Imran Khan to boost the country’s revenue.
They estimated the country’s annual revenue from these sectors would increase manifold after implementation of the system.
The FBR had been making efforts for the last 15 years to implement the system, but it was delayed every time due to court cases and other factors.
FBR tells sugar mills to install track, trace system
Prime Minister Khan has consistently pushed the FBR to launch the system to curb tax evasion and document the country’s economy, officials said.
The Sindh High Court (SHC) has recently dismissed the civil suit of M/s SICPA against the award of track and trace system contract granted to the M/s AJCL consortium.
Now, the work on the project has been resumed on a fast track basis.
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 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.
After specification of the date, the FBR will confiscate the cigarettes, sugar, cement and fertiliser without the tax stamps from the market, the officials said.
FBR’s track and trace system: KTC offers assistance to PM
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.
According to the experts, the tax evasion only in the tobacco sector was believed to be around Rs200 billion and such evasion compel the government to impose indirect taxes, which results in inflating the prices of commodities of everyday use.
The Track and Trace system aims at providing minimum human interface, preventing leakage of revenue, under-reporting sales of specified goods, and to ensure proper payment of duty and taxes.
Copyright Business Recorder, 2021
Comments
Comments are closed.