LAHORE: The effective implementation of the Track & Trace System (TTS) has the potential to contribute billions of rupees to the national treasury, which is currently being lost due to illicit trade.
However, the implementation and installation of TTS in manufacturing units across key sectors such as sugar, cement, fertilizer, and tobacco are progressing slowly.
This delay is attributed to a lack of interest from the authorities and resistance from manufacturers involved in illicit activities, sources said, adding: “There is a consensus among industry experts, legal compliance companies, and to some extent, the government, that the track and trace system is not only instrumental in widening the tax net by incorporating tax evaders but also represents the only long-term solution to the nation’s revenue challenges.”
According to Syed Saifullah Kazmi, Head of Investment Banking at Intermarket Securities, “Temporary fixes will not resolve Pakistan’s revenue issues, a sustained effort to expand our tax base is
crucial.”
To this end, he emphasized the need for the government to expedite TTS implementation and take decisive action against manufacturers who resist adopting this system.
Quoting an international report on tax evasion, he stated that Pakistan faces significant losses, Rs956 billion, due to tax evasion and illicit trade in key sectors.
Specifically, the tobacco sector alone incurs losses of Rs240 billion due to the activities of illicit cigarette manufacturers, said Kazmi.
Recently, Prime Minister Shehbaz Sharif also took notice of the slow progress in the TTS implementation across key sectors.
He instructed authorities to establish a committee tasked with identifying obstacles to TTS deployment and those implicated in tax evasion within seven days.
Copyright Business Recorder, 2024
Comments
Comments are closed for this article.