LAHORE: The cement industry is seeking tax waivers to recoup investments made in theTrack and Trace System (TTS), following a government investigation into the delay and incomplete implementation of the system.
The Prime Minister Shahbaz Sharif last week ordered a probe into the TTS's delays and shortcomings.The All Pakistan Cement Manufacturers Association (APCMA) spokesperson on Monday asked the government to compensate the industry through tax relief for heavy investments made on the implementation of the track and trace system.
Blaming the Federal Board of Revenue (FBR), the APCMA claimed that from day one of the TTS, the cement industry officials in various meetings and correspondence with the FBR pointed out the nonfunctioning of the system in the cement industry. Further, the TTS will not achieve the desired results from the cement industry.
However, the FBR gave a deaf ear to the suggestion and did not take it seriously. Rather, the cement industry was coerced into purchasing equipment worth billions of rupees for implementing the track and trace system, the APCMA claimed.
Various trial runs of the track and trace system on the cement industry failed miserably and instead of removing the shortcomings, the dispatches of the cement industry were stopped by the FBR to forcefully implement the track and trace system.
“The cement industry played its role for the implementation of the track and trace system in the national interest but after its failure the industry needs tax relief adjustments for its heavy investments in the system because the industry is in crisis due to decreasing economic activities, limited development activities, and an increase in production cost,” the spokesperson demanded.
The cement industry suggested that a collective approach to implementation of the track and trace system would have saved valuable foreign exchange lost in importing machinery and may have yielded better results.
The cement industry has supported this initiative from the very first day and instead of challenging its implementation, as was the case with some other industries, engaged with the FBR in good faith, as successful implementation of the system would have prevented tax fraud.
The cement industry is amongst the highest contributors to the national exchequer and has contributed approximately Rs240 billion in taxes in tax year 2022-23. Furthermore, the cement industry also earns valuable foreign exchange by exporting cement and such exports in the year 2022-23, were approximately $210 million.