Prime Minister Imran Khan will launch the Federal Board of Revenue (FBR) ‘Track and Trace system’ in the sugar industry on 23 November 2021. The Track and Trace system will ensure electronic monitoring of key sector products’ production and sale, including tobacco, fertilizer, sugar, and cement. The range of electronic surveillance ranges from the production of products to its use by end-users, which brings much-needed revenue to the country and prevents tax evasion in these sectors.
FBR is now launching the Track and Trace System
After launching the electronic monitoring of the tobacco industry, FBR is now launching the Track and Trace System in the next major phase of sugar industry, which the remaining sectors will follow. In this regard, FBR has already issued a long-term mandate of Sales Tax General Order No. 5 under Section 40C (2) of the Sales Tax Act-1990 and Act 150 ZF of the Sales Tax Laws 2006.
Unique Identification Marking from 11 November
The stated STGO determines that no sugar bag will be allowed to leave the production, factory, or production facility without the inclusion of activated stakes, Unique Identification Marking (UIMs) from 11 November 2021. The Stamps, Unique Identification Markings (UIMs) ) must be obtained, purchased from FBR Licensee Ms. AJCL / MITAS / Authentix Consortium.
Implementation of Electronic Monitoring
The provisions of Section 40C (2) of the Retail Tax Act, 1990 and Act 150 ZF of the Sales Tax Act, 2006 authorize FBR to announce the date of commencement of the use of Electronic Monitoring of Production and Sales of goods in the prescribed manner on all production sites of notified sectors.
Manual systems to automated technology
It is worth noting that the automation of processes and the digitalization of economic transactions remain at the heart of the larger FBR concept. FBR is moving rapidly from manual systems to automated technologies, designed to bring about positive change in the tax system.
FBR is planning to cover the beverages and petroleum sector
Track and Trace System and many other similar programs and interventions are designed to increase revenue, promote transparency and thus increase tax compliance in Pakistan. FBR plans to include beverages and the petroleum sector in the Track and Trace Program in the next phase.
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