ISLAMABAD: The Federal Board of Revenue (FBR) and a licensee company are expected to complete a large-scale survey of all sugar mills and cigarette manufacturing companies by end of September 2021 for the installation of track and trace system at sugar and tobacco sectors.
Sources told Business Recorder here on Sunday that the sugar and tobacco sectors remained the top priority of the FBR for installation of the track and trace system. The Project Director Office of the Track and Trace FBR and the M/s AJCL consortium are jointly conducting a physical survey of sugar mills and cigarette manufacturing companies.
In this connection, 3-4 survey teams are actively engaged in the process of physical survey across the country.
During the survey, the teams are checking the installation capacity at the sugar mills and cigarette units and other specifications and requirements needed at the units. The joint survey is expected to be completed by end September 2021.
The FBR has resumed the process of installation of track and trace system at the manufacturing premises of tobacco products, cement, sugar, and fertilisers. 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.
The FBR will confiscate the cigarettes, sugar, cement and fertiliser without the tax stamps from the market. Through a notification, the FBR will notify the date after implementation of the track and trace system in the coming months.
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.
Only a product sold in the market without a tax stamp would be confiscated. In order to prevent leakage of federal tax revenue and under-reporting of production and sales of tobacco, cement, sugar and fertiliser products and to ensure proper payment of duties/taxes on the manufacture and sale of these goods, the FBR is mandated to licence the development, implementation, operation and maintenance of a track and trace system.
Copyright Business Recorder, 2021