ISLAMABAD: The electronic monitoring Track and Trace system has helped the Federal Board of Revenue with increasing revenue collection from key sectors including Tobacco, sugar and Fertilizer.
Sources said that several successful demonstrations were conducted in all these sectors to showcase the functionality of the Track & Trace System. Subsequently, this system was effectively implemented across the majority of these sectors.
This successful deployment has significantly contributed to the revenue authorities exceeding their Tax Collection Targets. Sources further said that the revenue collection has surged to Rs83.5 billion from Tobacco sector during Fiscal Year 2023 as a result of the implementation of the Track and Trace system.
Whereas, FBR has collected Rs61.79 billion revenue from Tobacco sector prior to implementation of T&T during FY 2022.
Similarly, the revenue collection from the sugar sector after the implementation of the T & T system reached Rs26.03 billion during December 2021 to March 2022.
Prior to implementation of T&T, the collection from the sugar sector was Rs19.9 billion, sources added.
The FBR has collected Rs2,041 billion in the first quarter of current financial year against the assigned target of Rs1,978 billion, thus exceeding the target by Rs63 billion.
Reportedly, FBR is also planning to introduce a “Sales Tracking System” before the next crushing season in the sugar sector to ensure traceability of the production till end user.
Recently, the World Bank in its report termed overall satisfactory performance in several Disbursement Linked Indicators (DLIs) including installation of Track and Trace system in key sectors under Pakistan Raises Revenue project.
The indicator reports the cumulative number of sectors covered in the track and trace system adding that the system has been installed in sugar and fertilizer sectors.
The system is also being implemented in the majority of tobacco manufacturing units (mostly covering large firms that account for more than 90% of tax revenue). However, it is not yet installed by small manufacturers, the report added
Sources said that FBR has been proactively involved in discussions with the local Tobacco manufacturers across the country in the first quarter of current fiscal year and has been successful in bringing the local Tobacco players into TTS fold. Resultantly, the rollout of TTS across the local Tobacco has paced up and is currently underway.
Sources said that FBR has started work to introduce T&T in other sectors such as Tea, Petroleum, Tyre, Pharmaceutical and Beverages sectors as reportedly the tax evasion in these sectors is over Rs 200 billion.
Sources said that with the implementation of a cutting-edge track and trace system, consumers can get authentic, safe products besides contributing to the growth of our economy.
In addition, by effectively monitoring production volumes and tracking goods throughout the supply chain, FBR can unlock the full potential of our national economy and create a vibrant marketplace that thrives on trust and reliability that benefits all stakeholders.
It is pertinent to note that Authentix Inc, a renowned company from the USA with a rich history of delivering highly effective authentication solutions to both Fortune 500 companies and government clients, with Consortium partners MITAS and AJCL, were awarded the contract for the implementation of a comprehensive Track & Trace System across various sectors in 2021, including Cement, Sugar, Fertilizer, and Tobacco.
