ISLAMABAD: Federal Board of Revenue has decided to implement a new tracking system for monitoring the production and clearance of major dutiable commodities.
The system is to be introduced with the name of ‘Track and Trace System’. It would initially cover cigarettes followed by other commodities operating under the taxation regime. FBR is taking into consideration proposals of all entities which have made presentations on different systems for tracking the cigarettes to check tax evasion in the tobacco sector.
Sources said that Board-in-Council, the tax policy decision making body of FBR, has taken the decision to implement the Track and Trace System in cigarettes, beverages, sugar, fertilisers and cement. The decision has been accepted by the tax authorities taking into account proposals of all FBR Members. The proposals of all companies would be analysed in this regard before taking the final decision.
Details revealed that the FBR Chief Sales Tax/Federal Excise Duty Policy has given a presentation to the authorities on the Track & Trace System, with particular reference to Request for Proposals (RFPs) issued by the Board in the year 2013 and the subsequent offers submitted by different companies having specialisation in the said field. The purpose of track & trace system is to monitor the production of dutiable and taxable goods and to provide safeguards and checks to ensure that payable duties and taxes are paid on the goods produced and adequate checks are placed on the sale of non-duty paid goods in the consumer market.
The presentation was specific to cigarettes industry; however, the Board-in-Council was of the view that RFPs may be revisited as FBR was concerned with monitoring the production by all the major sectors such as beverages, sugar, fertilisers, cement, cigarettes, etc.
It was decided that a new Request for Proposal (RFP) in this regard will be worked out with primary focus on monitoring of production by all the aforementioned sectors and fresh presentation to this effect shall be given before the Board-in-Council, FBR added.