FBR to Introduce Tracking System in Tile Producing Sector.
FBR Cracks Down on Tax Evasion: Track and Trace System Expands to Tile Industry
The Federal Board of Revenue (FBR) of Pakistan is taking a significant step towards combating tax evasion and boosting revenue collection.
Read More: FBR to Bring More Sectors in E-Sales Tax Integration System
Following the successful implementation of the track and trace system in five key sectors, the FBR has announced its expansion to the tile manufacturing industry.
This move aims to digitally monitor and track the production and distribution of tiles, ensuring greater transparency and accountability.
Expanding the Net: Track and Trace System Explained
The introduction of the track and trace system in the tile sector follows S.R.O. 308 (1)/2024, amending the Sales Tax Rules, 2006.
This amendment mandates electronic monitoring, tracking, and tracing of production, imports, and supply chains for various goods in real time.
This includes products like:
- Tobacco
- Beverages
- Sugar
- Fertilizer
- Cement
- Petroleum products
- Steel
- Now, tiles
Setting Deadlines and Pushing Integration:
The FBR has already set a strict deadline for the cement sector. Effective from April 30, 2024, no cement bag can leave any production site without the application of tax stamps or unique identification markings. This stringent measure emphasizes the commitment to enforcing the track and trace system across various industries.
The Technology and Partnerships:
The FBR is partnering with Licensee Authentix Inc from the US, alongside AJCL Private Limited and MITAS Corporation of South Africa, for the implementation of the solution in the cement sector.
While installations are complete across cement factories, some manufacturers remain behind in fully integrating the system.
Benefits of the Track and Trace System:
The implementation of the track and trace system offers several crucial benefits:
- Real-time Production Monitoring: This represents a breakthrough improvement compared to traditional retrospective auditing methods. Tax authorities gain immediate and comprehensive access to data, enabling them to:
- Make proactive decisions
- Improve the accuracy of tax assessments
- Gain unprecedented visibility into the production landscape of the sector
- Enhanced Tax Collection: The system provides a centralized repository of data, allowing authorities to identify and address potential loopholes and discrepancies, leading to increased tax revenue collection.
- Regulation and Transparency: The inclusion of local tobacco facilities in the track and trace system signifies the government’s commitment to stricter regulations and greater transparency in the tobacco industry.
The Road Ahead:
The expansion of the track and trace system to the tile sector is a positive step towards creating a fairer and more transparent tax environment in Pakistan.
It underscores the FBR’s resolve to combat tax evasion and streamline revenue collection processes across various industries.
As the system becomes fully integrated in different sectors, it holds the potential to significantly improve tax compliance and contribute to the economic development of the nation.
Note: The information above might not be accepted 100%. Please verify from your own sources. We will not be responsible for any kind of loss due to our content.
For more news, please visit Munafa Marketing.