ISLAMABAD: The Federal Board of Revenue (FBR) has directed cement manufacturers to start implementation of the Track and Trace System (T&TS) from August 18, 2023.
It is learnt that no cement bag will be permitted to leave a production site, factory, or manufacturing plant without the application of tax stamps/unique identification markings with effect from August 18, 2023.
With assistance from its Licensee Authentix Inc, US, and consortium partners, AJCL Private Limited and MITAS Corporation of South Africa, the FBR had been striving to implement the T&T solution in the cement sector by July 1, 2022.
Cement manufacturers: Implementation of track-and-trace system delayed
According to sources, numerous successful demonstrations were conducted in multiple factories to demonstrate the performance of the Track and Trace system. However, there were delays on the part of the cement makers.
Almost 70 percent of the operational cement plants are located in the North Region, while the remaining 30 per cent capacity is located in the South Region.
According to the All Pakistan Cement Manufacturers Association, the cement sector’s production capacity has surged to approximately 83.1 million tonnes.
Currently, there is 20 percent customs duty, six per cent additional customs duty, Rs2kg FED and 18 percent sales tax on finished cement products besides, 11 per cent income tax has also been imposed on the cement sector.
In a recent report, a local NGO highlighted that the FBR’s Track and Trace system is yielding positive results. The digital solution has effectively limited illicit trade in the tobacco sector to under 15 percent.
The Track and Trace System’s capability for real-time production monitoring offers a transformative shift from conventional retrospective auditing approaches.
The real-time production monitoring will enable the tax authorities to have access to current and comprehensive data which will facilitate proactive decision-making and ensures more accurate tax assessments. This centralized repository will provide tax authorities with unprecedented visibility into the sector’s production landscape.
Copyright Business Recorder, 2023
Comments
Comments are closed.