Islamabad:The track and trace system is appreciated as a key step to curb counterfeiting and evasion of taxes on cigarettes.
At a high-level meeting in Islamabad, participants directed that the automatic track and trace system should be installed in all cigarette factories within two weeks. They emphasised that law enforcement agencies should provide all possible support to the Federal Board of Revenue (FBR) to prevent the smuggling and sale of illegal cigarettes. Speakers also expressed concern over cross-border cigarette smuggling and directed the posting of officers with a good reputation at border crossings.
"It is in the interest of the tobacco industry that the trace and track system is implemented flawlessly to control counterfeiting and the FED evasion," endorsed, Samera Irfan, the CEO of Khyber Tobacco Company (KTC). She stated, "This is the best and most efficient way to stop counterfeit products and FED evasion. KTC is the first company in the country to have already implemented Trace and Track across its sales and production."
"Trace and track system and FED are inevitable to increase tax collection from the tobacco sector. However, what is required is the implementation of these orders by the administrators in a true sense," she added. Irfan also requested the government to improve border controls to discourage non-duty paid smuggled cigarettes, especially at the border with Azad Jammu Kashmir. FBR Chairman Asim Ahmad has already informed the Senate Standing Committee on Finance that the FBR made 811 seizures in which 61 million sticks of smuggled cigarettes were seized during 2022-23.
It is urged that all tobacco manufacturers should implement Trace and Track system, as this is a system used to monitor and track the movement of goods, products, or people throughout a supply chain or transportation process, utilising technologies such as barcodes, RFID tags, GPS tracking, and other types of sensors to collect data.
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