The Federal Board of Revenue (FBR) and AJCL Private Limited, along with its partner Authentix Inc and Mitas Corporation, on Friday signed a contract to operationalise the track and trace system for tobacco, cement, sugar and fertiliser sectors.
The IT-based solution is to be rolled out across these sectors from July 1, 2021 in a bid to enhance tax revenue, reduce counterfeiting and prevent smuggling of illicit goods through implementation of a robust, nationwide, electronic monitoring system for production volumes and by affixing more than five billion tax stamps on various products at the production stage.
This will enable the FBR to track goods throughout the supply chain.
Speaking on the occasion, FBR Member (IR Operations) Muhammad Ashfaq Ahmed remarked that the FBR shall work closely with the AJCL consortium during the rollout of the programme across different industries on very aggressive timelines.
Authentix President and CEO Kevin McKenna stated that like in other countries, it was expected that the programme would help provide a transformational boost to the local economy, enhance revenue and make the tax collection process more transparent for the benefit of the industry.
AJCL CEO Omer Jaffer said that the consortium was looking forward to working with the FBR to configure and implement various components of the solution, including the tax stamp application and production monitoring equipment, and was ramping up production of specialised tax stamps that would act as unique identification marks on the products.
It is believed that installation of the track and trace system in the specified sectors will be a game changer and will bring more than 45 million tons of cement, more than four billion sticks of tobacco cigarettes, more than four million tons of sugar and more than 30 million tons of fertiliser to the tax net as well as enhance digitisation of economic activity, improve revenue forecasting and curb counterfeit products in the market.
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