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Four major tax-evading sectors told to install Track and Trace System

National

March 12, 2021

ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday issued the Sales Tax General Order for four major tax evading sectors, including tobacco, sugar, cement and fertilizers for making necessary arrangements for installation and implementation of the Track and Trace System at their production facilities.

The Sales Tax General Order (STGO) issued by the FBR on Thursday bound all units of four sectors of tobacco, sugar, cement and fertilizer for installing and implementing the Track and Trace System with effect from July 1, 2021.

According to the STGO issued by the FBR on Thursday, the provision of Section 40C(2) of Sales Tax Act1990, read with Rule 150ZF of Sales Tax Rules 2006, mandates the FBR to notify the date for implementation of Electronic Monitoring of production and sales of goods in the manner prescribed in the law on all manufacturing sites (unless otherwise provided) of all the notified sectors.

In exercise of power conferred under Section 40C(2) of Sales Tax Act 1990 and Rule 150ZF of Sales Tax Rules 2006, it is hereby notified that no tobacco, sugar, cement and fertilizer products shall be allowed to be removed from production site, factory premises, or manufacturing plant or import station without affixation

of tax stamps/Unique Identification Marking (UIMs) with effect from July 1, 2021,which are to be obtained/procured from and applied by the FBR’s Licensee M/S AJCL/MITAS/AUTHENTIX Consortium.

All manufacturers of tobacco, sugar, cement and fertilizers are warranted under the law to make necessary arrangements for importation of applicators and other equipment required for successful installation and implementation of the Track and Trace System at their production facilities.

Top officials of the FBR told this scribe that the Track and Trace System would start functioning in the shape of pilot project and it would be replicated for four sectors with effect from July 1, 2021. In the pilot phase, only two tobacco plants would place the Track and Trace System at their production units.

The FBR had failed to install the Track and Trace System since 2008; various efforts were made in the last 13 years but it ended up into failure. Now this time, the FBR executed its plan carefully and finally awarded the Track and Trace system to a consortium. Although, efforts were made to block it again and the Islamabad High Court was approached but the honorable court issued notices to all stakeholders without granting a stay order to halt the process. Now the FBR awarded the contract and also issued STGOs for installing and implementing the Track and Trace system at full swing from the start of next fiscal year with effect from July 1, 2021.