100 units of cement, sugar and fertilizer sectors: FBR to track, monitor clearance of duty/tax-paid items

Federal Board of Revenue (FBR) has decided to track and monitor the clearances of duties/taxes paid items from around 100 units of cement, sugar and fertilizer sectors under the automated Track and Trace System.

In this regard, the FBR has decided to bring 100 units of cement, sugar and fertilizer sectors under the automated Track and Trace System next month. Sources told Business Recorder that implementation of the Track and Trace System will play a key role in curbing tax evasion of billions of rupees annually.

Under the 2nd phase of expansion of Track and Trace System for another three sectors, the FBR would issue Request for Proposal (RFP) next week for seeking applications from interested parties to provide technological solutions to determine the real production and check revenue leakage to the tune of billions of rupees.

In the third phase, the Track and Trace System will be placed for beverages, probably in March 2020. In the fourth and last phase, this much-awaited Track and Trace System will be placed for POL products in the next fiscal year 2020-21 after July 1, 2020.

The RFP for three more sectors would be issued next week as the FBR wants to place this technological solution next month. There were four fertilizers units in the county and number of sugar units stands at 48 while the number of cement plants hovered around 40.

The Track and Trace System for 100 units belonging to sugar, cement and fertilizer would be placed next month. The third and fourth phase of Track and Trace System would bring beverages and POL products in the upcoming two phases.

The FBR had opened bidding and granted license of Track and Trace System for tobacco industry. The FBR directed all cigarette manufacturers last month to implement fully automated Track and Trace system on tobacco products in six months period.

The directions were issued by Project Director Track and Trace system to the cigarette manufacturers during the last meeting of the stakeholders held at the FBR House. Out of 11 cigarette manufacturers, the meeting was attended by two major companies and three local manufacturers.

The Azad Jammu and Kashmir high-ups had assured the FBR that their tax department would implement the said project for units operating within the jurisdiction of the AJK. On other hand, Islamabad High Court (IHC) had already issued notice to the FBR to file report on the grant of license of Track and Trace System for tobacco products to the M/s Radio & Telecommunication Corporation (NRTC).

Under FBR SRO 250(I)/2019, the licensee shall be responsible to operationalize the system within six months of issuance of license. The licensee shall run and manage the system under proper warrantee and shall ensure maintenance during the period of license.

The licensee shall charge fee for tax stamps from the manufacturer or importer. The stakeholders including licensee had informed the FBR that at least six months would be needed to import the required machinery for the project. The FBR had granted permission to implement the project in six months and another three months grace period.