PM Imran Khan to open Track and Trace System for sugar sector

ISLAMABAD: Prime Minister Imran Khan will inaugurate the Track and Trace System of the Federal Board of Revenue (FBR) for the sugar industry on November 23, 2021 at the PM House.

The Track and Trace System will ensure electronic monitoring of manufacturing and sales of products of important sectors consisting of tobacco, fertilizers, sugar and cement.

The scope of electronic monitoring ranges from manufacturing of the products to its usage by the end-users; thus, bringing the much-needed revenue for the country and preventing tax evasion in these sectors.

After rolling out electronic monitoring of the tobacco sector, the FBR is now implementing a Track and Trace System in the sugar sector, which will be followed by the remaining sectors.

In this regard, the revenue board had already issued Sales Tax General Order No 5 vide powers conferred under Section 40C (2) of the Sales Tax Act, 1990 and Rule 150 ZF of the Sales Tax Rules, 2006.

The STGO ordains that no sugar bag will be allowed to move out of a production site, factory premises or manufacturing plant without affixation of activated stamps/unique identification marking (UIMs) with effect from November 11, 2021.

The stamps/unique identification markings (UIMs) are to be obtained/procured from the FBR’s licensee AJCL/MITAS/Authentix Consortium.

The provisions of Section 40C (2) of the Sales Tax Act, 1990 read with Rule 150 ZF of the Sales Tax Rules, 2006 mandate the FBR to notify the date for the implementation of the electronic monitoring of production and sales of goods in the manner prescribed in the law on all manufacturing sites of notified sectors.

The automation of processes and digitalisation of the economic transactions remain at the heart of the FBR’s larger vision.

The revenue board is vigorously moving from manual systems to automated technology, which is set to bring a commendable revolutionary change in the taxation system.

The Track and Trace System and many other similar initiatives and interventions are meant to increase the revenues, promote transparency and; thereby, maximise tax compliance in Pakistan.

In the next phase, the FBR plans to cover the beverages and petroleum sector into the Track and Trace System.