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FBR Set to Implement Track and Trace System

Islamabad: With the sugar industry’s conditional agreement to the affixing of tax stamps to sugar bags, the national tax collecting authority is ready to launch the Track and Trace (T&T) system beginning this month.

The T&T system is anticipated to prevent billions of rupees in sales tax evasion in at least four main industries: tobacco, cement, sugar, and fertilizers.

FBR officials announced in a recent meeting with sugar mill owners, including representatives from the Pakistan Sugar Mills Association (PSMA), that this approach would be implemented beginning in September.

According to an FBR official, the tax collection agency has been attempting to implement this method for 15 years, but it has been repeatedly delayed by court cases and other circumstances.

The FBR will announce a date following the system’s deployment to end the sale of cigarettes, sugar, cement, and fertilizer without a tax stamp.

Read: Karachi is Undergoing a $1 billion Bus Route Project

An official estimated that tax evasion in the tobacco industry alone amounted to almost Rs 200 billion per year.

The installation of the system was supposed to begin in July 2021, however it was postponed due to a case that was recently dismissed by the Sindh High Court (SHC).

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