ISLAMABAD: Federal Board of Revenue (FBR) will start monitoring sales production and stock positions of big Beverages as well as Cement companies including Coca Cola, Pepsi Cola, Lucky Cement.
Document states that FBR has written a letter to the Chief Commissioners Inland Revenue with regard to monitoring of the cement and Beverages sector under section 40B of the sales Tax Act, 1990.
FBR is pleased to post the Inland Revenue officials in the below mentioned Beverages and Cement premises to monitor production sales and stock positions.
The Beverages companies included Pakistan Beverages Limited as well as Mehran Bottlers Pvt Ltd SITE Karachi, Sukkur Beverages Pvt Ltd, Northern Bottling pvt Ltd Peshawar, Coca Cola Export Corporation Raiwind Road Lahore, Pepsi Cola International Pvt Ltd Hattar Industrial Estate Islamabad, Coca Cola Beverages Pvt Ltd Raiwind road Lahore, Coca Cola Beverages Pvt Ltd Industrial Estate Phase 2 Multan, Coca Cola Beverages Pvt Ltd Khayali bypass Gujranwala, Coca Cola Beverages Pvt Ltd Faisalabad, Coca Cola Beverages Pvt Ltd Rahim Yar Khan, Coca Cola Beverages Pvt Ltd Haripur KPK, Coca Cola Beverages Pvt Ltd SITE Karachi, Lotte Akhtar Beverages Pvt Ltd Lahore, Naubahar bottling company Pvt Ltd Gujranwala, Punjab Beverages company Pvt Ltd Faisalabad, Meezan Beverages company Pvt Ltd Manga Mandi Lahore, Gourmet Foods Sundar and Five Star Foods Faisalabad.
Meanwhile, the cement units included Fecto Cement Limited Sangjani Islamabad, Zeal Pak cement Factory Ltd Kotri Hyderabad, Power cement Ltd Nooriabad, Dewan cement Ltd Bin Qasim Town Karachi, Dewan Hattar Cement Haripur KPK, Attock Cement Pakistan Ltd Hub Balochistan, Thatta Cement Co Ltd, Lucky Cement Ltd Karachi plant super highway, Lucky Cement Ltd Lakki Marwat and Cherat Cement Nowshera.
Sources said that FBR’ team has already been monitoring the sales production and stock positions of Tobacco factories and Sugar mills due to which FBR witnessed an increase in revenue.
Large-Scale Manufacturing (“LSM”) contributes a significant portion of total federal tax revenue; however, the full real federal tax potential in LSM segments like tobacco, cement, sugar, cement, Beverages and fertilizer is yet to be realized, sources added.
Recently, FBR after the lapse of one year decided to install the Track and Trace system at the production line of each cement manufacturer despite the resistance of the cement industry.
The Document states that FBR has directed all officials to conduct initial stock taking in supervision of a senior officer and report in this regard will mandatorily be shared with the Board.
In case of beverages concentrate, daily monitoring of consumption of concentrate shall be monitored for bottlers and daily production and dispatch of concentrate for manufacturers and accordingly reported, document added.
The officials/officers are posted for a period of 30 days commencing from date of receipt of order u/s 40B of the sales tax act, 1990 and a comprehensive report on outcome of the monitoring u/s 40B (ibid) may be furnished to the Board on the culmination of this exercise.
Currently, T&T technologies across the globe are used to assist in the process of tax collection. In Pakistan, a leading AJCL Consortium is providing Track and Trace services to FBR.
It is pertinent to note that FBR awarded the project after a bidding process to AJCL Consortium not only to prevent leakage of federal tax revenue but under-reporting of production and sales of tobacco, cement, sugar,Beverages and fertilizer products.
Sources said that FBR with the help of AJCL Consortium held a number of sessions with cement manufacturers for providing technical assistance in installing and operating the system, sources added.
On the other hand, FBR has also formed IR Enforcement Units in different Jurisductions not only to examine and authenticate Tax Stamp but verification of reports of unauthorized stoppage of production.
