ISLAMABAD: The Federal Board of Revenue (FBR) has extended deadline for cement manufacturers to fully implement the Track and Trace System by April 30, 2024.
It is learnt that the last date for implementation of the T&T System on the cement sector was December 31, 2023. The cement sector was unable to comply with the deadline of December 31, 2023. The system was implemented at one production line of each manufacturing company, but the system was not installed at all production lines.
Recently, the cement industry met with the FBR chairman at the FBR Headquarters to review progress on the track and trace system.
The industry conveyed its reservations over the issues in the smooth implementation of the system at all cement plants. The industry sought more time for full-fledged implementation of the system. A new deadline of April 30, 2024 has been given to the cement units.
According to sources, 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 April 30, 2024.
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 since July 1, 2022.
Sources further stated that 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 percent capacity is located in the South Region.
Currently, there is 20 percent Customs duty, six percent additional Customs duty, Rs 2 per kg FED and 18 percent sales tax on finished cement products besides, 11 percent income tax has also been imposed on the cement sector.
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 ensure more accurate tax assessments. This centralized repository will provide tax authorities with unprecedented visibility into the sector’s production landscape.
Copyright Business Recorder, 2024
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