KARACHI: No manufacturer in tobacco, fertilizer, sugar and cement sectors will be allowed to sell or even remove their products from the production facilities without affixation of the Unique Identification Marking (UIM) from July 1, 2021.
The decision is aimed at implementing track and trace system under SRO 250/2019 in an effective manner. Official sources said that after detecting massive revenue leakages in the financial ledgers of the companies falling in the aforesaid business sectors, the Federal Board of Revenue (FBR) has decided to monitor the production, sale, clearance, stock or any other related activity through electronic or other means.
Furthermore, they said that majority of the manufacturers in these sectors were reportedly involved in sales tax evasion through suppression of sales and production, etc. Therefore, the FBR has decided to impose Section 40C(2) of the Sales Tax Act 1990 from July 1, 2021 to monitor production, sale, clearance, stock or any other related activity through electronic or other means.
According to the notification issued under Section 40C(2) of the Sales Tax Act 1990 and Rule 150ZF of the Sales Tax Rules, 2006, the board has notified that no products from the tobacco, fertilizer, sugar and cement sectors shall be allowed to be removed from a production site, factory premises or manufacturing plant or import station without affixation of tax stamps/UIMs from July 1, 2021.
Moreover, the FBR also directed all the manufacturers of tobacco, fertilizer, sugar and cement products to make necessary arrangements for importation of applicators and other equipment required for successful installation and implementation of track and trace system at their production facilities.
Copyright Business Recorder, 2021