ISLAMABAD: Following the successful integration of the track and trace system in five key sectors, the Federal Board of Revenue (FBR) has announced plans to extend its implementation to the tile manufacturing units, aimed at digitally monitoring the production and distribution of tiles.
As per the latest amendment outlined in S.R.O. 308 (1)/2024, the FBR has revised the Sales Tax Rules, 2006, to encompass the electronic monitoring, tracking, and tracing of production, imports, and supply chains for a range of goods in real-time. This includes products such as tobacco, beverages, sugar, fertilizer, cement, petroleum products, steel, and now, the tile manufacturing sector.
In a recent development, the FBR has set a final deadline for the cement sector, mandating that no cement bag shall be permitted to leave any production site, factory, or manufacturing plant without the application of tax stamps or unique identification markings, effective from April 30, 2024.
Partnering with Licensee Authentix Inc from the US, along with consortium partners AJCL Private Limited and MITAS Corporation of South Africa, the FBR has been actively engaged in implementing the Track and Trace solution in the cement sector since 2022.
While installations have been made across all cement factories, there have been delays on the part of manufacturers in fully integrating the Track and Trace system.
Sources have revealed that the real-time production monitoring capabilities offered by the track and trace system signify a notable departure from traditional retrospective auditing methods. By rolling out the Track and Trace system across various sectors, tax authorities will gain immediate and comprehensive access to data, facilitating proactive decision-making and improving the accuracy of tax assessments. The centralized repository provided by the system will offer tax authorities unprecedented visibility into the production landscape of the sector.
Furthermore, local tobacco facilities have also been incorporated into the Track and Trace system, aiming to boost tax revenues through enhanced monitoring and regulation.
