FBR urges fertiliser industry to improve TTS compliance

ISLAMABAD: The Federal Board of Revenue (FBR) has issued a directive to the fertilizer industry, urging them to enhance their facilities and take specific measures to safeguard Track & Trace (TTS) equipment from environmental risks.

According to sources, the FBR, in collaboration with the Licensee consortium comprising Authentix Inc. (USA), AJCL (Private) Ltd., and MITAS, has effectively implemented the TTS system in the fertilizer sector, aligning with the performance requirements set by the FBR in July 2022.

The FBR and the Licensee have actively participated in the rollout of TTS, successfully integrating a significant portion of the local tobacco industry and two-thirds of the country's cement manufacturing plants. Plans call for sector-wide implementation of TTS in the cement sector by December, which is expected to increase tax revenue for the national treasury.

Sources indicate that compliance levels within the industry vary, with some units not fully adhering to FBR mandates while others serve as examples of cooperation. Despite the system's efficient operation and compliance with required standards, as periodically verified by the Licensee, the industry is called upon to adhere to established guidelines and contribute to this national endeavor.

The FBR has expressed appreciation for units that have proactively maintained compliance and demonstrated effective TTS operations in accordance with FBR directives under SRO 250(I)/2019. The remaining industry units have been directed to ensure full compliance with FBR requirements.

According to sources, the TTS system has continued to perform effectively in all fertilizer industry units since its deployment in July 2022, dispelling concerns raised by the industry about its compatibility.

Despite challenges related to environmental hazards, aging infrastructure, and some reluctance to embrace the system, the FBR and the Licensee remain committed to encouraging the industry to make necessary improvements to maximize tax collection through this efficient system in the long term.

Earlier, on October 19, 2023, the Fertilizer Manufacturers of Pakistan Advisory Council (MPAC) raised concerns with the FBR regarding issues with the Trace and Track System (TTS) in the fertilizer industry. The primary problem is that the system's hardware is not suitable for the fertilizer environment.

MPAC said that a trial from July 5 to August 4, 2023, under FBR supervision, revealed inefficiencies, and MPAC argued that the TTS is not suitable for the fertilizer sector and could disrupt domestic fertilizer supply chains. Challenges included frequent downtime, erratic stamping behavior, and data errors. MPAC requested an objective review of the TTS deployment or the installation of industry-compatible hardware at no cost.

The TTS licensee consortium comprises Authentic, Inc., AJCL (Pvt.) Ltd., and MITAS Corporation.