ISLAMABAD - The Federal Board of Revenue (FBR) has decided to implement Track & Trace System in fertiliser industry from the start of next fiscal year to check tax evasion.
“The provisions of Section 40C (2) of the Sales Tax Act, 1990 read with Rule 150ZF of the Sales Tax Rules, 2006 mandate Federal Board of Revenue (FBR) to notify the date for the implementation of Electronic Monitoring of production and sales of goods in the manner prescribed in the law on all manufacturing sites of notified sectors,” said a Sales Tax General Order issued by the FBR on Tuesday.
“In exercise of the powers conferred under Section 40C (2) of the Sales tax Act, 1990 and Rule 150ZF of the Sales Tax Rules, 2006 it is hereby notified that no fertilizer bag shall be allowed to be removed from a production site, factory premises or manufacturing plant or import station without affixation of tax stamps/Unique Identification Markings (UlMs) with effect from 1” July, 2022, which are to be obtained/procured from FBIt’s Licensee M/s. AJCL/MITAS/Authentix Consortium”.
The FBR had decided to roll out the Track and Trace System to check tax evasion of billions of rupees in four major sectors including sugar, tobacco, cement, and fertiliser. The FBR had already implemented the system in sugar as well as in tobacco industry. The country’s annual revenue from these sectors would increase manifold after implementation of the system. The FBR had been making efforts for the last 15 years to implement the system, but it was delayed every time due to court cases and other factors. But unfortunately, it resulted in 5 unsuccessful attempts. However, in its sixth attempt, FBR has procured one of the best Track & Trace System (TTS) available after strenuous efforts of over a decade.
Sales tax collection from sugar mills jumped Rs6.59 billion or 33 percent to Rs26.5 billion in the first four months (December 2021-March 2022) of this crushing season, thanks to the Track & Trace System (TTS). The TTS was launched by former Prime Minister Imran Khan on November 23, 2021 to keep real time tabs on the sugar sector. Thereafter, no sugar bags were allowed to be removed from the factory premises and sold in the market without tax stamps. Owing to this transparent electronic monitoring of production, all sugar mills had to declare actual crushing and production during the current season. As a result of this digital intervention, the government has learnt that sugar mills have produced record high sugar to the tune of 7.51 million tonnes (up to 24.03.2022) as against 5.63 million tonnes produced during the last crushing season, showing an increase of 34 percent.
Later, former Finance Minister Shaukat Tarin inaugurated the much awaited Track & Trace System of Federal Board of Revenue (FBR) for tobacco industry. Rolling out this significant project would help prevent leakage of revenue, under-reporting of production and sales of tobacco products and ensure proper payment of FED and Sales Tax on the manufacture and sale of the products.
“The provisions of Section 40C (2) of the Sales Tax Act, 1990 read with Rule 150ZF of the Sales Tax Rules, 2006 mandate Federal Board of Revenue (FBR) to notify the date for the implementation of Electronic Monitoring of production and sales of goods in the manner prescribed in the law on all manufacturing sites of notified sectors,” said a Sales Tax General Order issued by the FBR on Tuesday.
“In exercise of the powers conferred under Section 40C (2) of the Sales tax Act, 1990 and Rule 150ZF of the Sales Tax Rules, 2006 it is hereby notified that no fertilizer bag shall be allowed to be removed from a production site, factory premises or manufacturing plant or import station without affixation of tax stamps/Unique Identification Markings (UlMs) with effect from 1” July, 2022, which are to be obtained/procured from FBIt’s Licensee M/s. AJCL/MITAS/Authentix Consortium”.
The FBR had decided to roll out the Track and Trace System to check tax evasion of billions of rupees in four major sectors including sugar, tobacco, cement, and fertiliser. The FBR had already implemented the system in sugar as well as in tobacco industry. The country’s annual revenue from these sectors would increase manifold after implementation of the system. The FBR had been making efforts for the last 15 years to implement the system, but it was delayed every time due to court cases and other factors. But unfortunately, it resulted in 5 unsuccessful attempts. However, in its sixth attempt, FBR has procured one of the best Track & Trace System (TTS) available after strenuous efforts of over a decade.
Sales tax collection from sugar mills jumped Rs6.59 billion or 33 percent to Rs26.5 billion in the first four months (December 2021-March 2022) of this crushing season, thanks to the Track & Trace System (TTS). The TTS was launched by former Prime Minister Imran Khan on November 23, 2021 to keep real time tabs on the sugar sector. Thereafter, no sugar bags were allowed to be removed from the factory premises and sold in the market without tax stamps. Owing to this transparent electronic monitoring of production, all sugar mills had to declare actual crushing and production during the current season. As a result of this digital intervention, the government has learnt that sugar mills have produced record high sugar to the tune of 7.51 million tonnes (up to 24.03.2022) as against 5.63 million tonnes produced during the last crushing season, showing an increase of 34 percent.
Later, former Finance Minister Shaukat Tarin inaugurated the much awaited Track & Trace System of Federal Board of Revenue (FBR) for tobacco industry. Rolling out this significant project would help prevent leakage of revenue, under-reporting of production and sales of tobacco products and ensure proper payment of FED and Sales Tax on the manufacture and sale of the products.
