ISLAMABAD: The Federal Board of Revenue (FBR) is likely to expand the scope of the Track and Trace system in the upcoming budget 2024-25.
According to sources, FBR has decided to introduce a single sales tax return for all businesses, whereas supply monitoring will be conducted for unregistered businessmen.
Sources said that the Track and Trace system will also be implemented in the tiles sector, and the FBR may grant additional powers to the Director General of Digital Invoices.
In the next budget, important business supply chains will be documented, and increase of Rs 1 in fee is also expected, sources added.
Sources said that retailers who do not implement the Point of Sale system will face special audits, sources warned.
The Track and Trace system will also be extended to the tiles sector, and measures will be taken to link company production with sales tax returns, sources revealed.
The development came after the International Monetary Fund (IMF) shown ‘concern’ over shortcomings in the implementation of the track and trace system by the Federal Board of Revenue (FBR).
These concerns were shared by the Washington-based lending agency during its current discussions with FBR authorities on tax structure and administration.
Sources said the IMF has asked for a detailed implementation report on the track and trace system and set a deadline for its complete adoption across five major sectors in the country.
The lender has urged for the track and trace system to be fully operational by next fiscal year. While discussions are still at the policy level, both parties have agreed to accelerate reforms to expand the tax net and prevent tax evasion.
