FBR’s track and trace system achieves major milestone
PHOTO: FILE
The Federal Board of Revenue (FBR) has achieved a milestone through successful implementation of the track and trace system on the sugar industry during the ongoing crushing season.
The innovative digital monitoring system of sugar production has been implemented on 79 sugar mills, having 151 production lines nationwide.
It is pertinent to mention that Prime Minister Imran Khan had launched the track and trace system on November 23, 2021 for the sugar sector, said a statement issued by the Federal Board of Revenue on Saturday.
“Thereafter, no sugar bags are allowed to be removed from factory premises and sold in the market without tax stamps,” it said.
Owing to the transparent electronic monitoring of production, all sugar mills are liable to declare their actual crushing and production during the current crushing season.
As a result of this digital intervention, sugar mills produced record high sugar at 7.51 million tons (till March 24, 2022) against 5.63 million in the last crushing season, depicting an increase of 34%.
Likewise, the sales tax collection by the Federal Board of Revenue amounted to Rs26.5 billion in the first four months (December 2021 to March 2022) of the crushing season as opposed to Rs19.9 billion in the corresponding period of previous season. This shows an increase of Rs6.59 billion which translates to 33% growth.
In addition to this, the Inland Revenue Enforcement Network (IREN) squads of FBR, in a counter-evasion operation, conducted more than 60 raids in various markets throughout the country to ensure successful implementation of track and trace system.
During the operation, the unstamped bags were seized by FBR officials as per law and procedure, which were being sold without tax stamps.
Federal Minister for Finance and Revenue Shaukat Tarin has commended the tax collection authority for successful implementation of track and trace system which turned Pakistan into a sugar surplus country once again. Likewise, FBR Chairman Dr Muhammad Ashfaq Ahmed also appreciated the performance of track and trace system.
He further reiterated ensuring of implementation of the system on the tobacco sector over the next few months as well as on other important sectors like fertiliser, petroleum and cement.
It will result in digital monitoring of the large scale manufacturing and production of these key sectors.
“Besides, preventing revenue leakages, it will help in minimising human intervention and pave the way for a transparent and reliable tax compliance system across the country,” he concluded.
Published in The Express Tribune, March 27th, 2022.
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