Sugar bags will be monitored by Federal board of Revenue’s (FBR) The track and trace system (TTS), in order to prevent tax evasion.
Government is all set to monitor movement of sugar bags to check tax evasion. The Track and Trace System (TTS) of the Federal Board of Revenue (FBR) will be launched on November 23 for the sugar industry. The tracking system for sugar industry will be launched by Prime Minister Imran Khan.
The revenue board had last month extended the same tracking system to the cigarette sector to monitor and check tax evasion. Now, the sugar industry will be the second in line in which the electronic monitoring system will be introduced.
The FBR has issued an official statement, the revenue watchdog said that it has already issued Sales Tax General Order No. 5 “which ordains that no sugar bag will be allowed to move out of a production site, factory premises or manufacturing plant without affixation of activated stamps/Unique Identification Marking (UIMs) with effect from November 11, 2021”.
The UIMs are to be obtained/procured from FBR’s Licensee AJCL/MITAS/Authentix Consortium. The Sales Tax Act-1990 read with Rule 150 ZF of the Sales Tax Rules-2006 mandate FBR to notify the date for the implementation of Electronic Monitoring of Production and Sales of Goods in the manner prescribed in the law on all manufacturing sites of notified sectors.
After introducing the tracking system in tobacco sector, FBR is now gearing up to implement TTS in the next significant sugar industry, which will be followed by the remaining sectors.
TTS was launched with an aim to ensure electronic monitoring of manufacturing and sales of products of important sectors consisting of tobacco, fertilisers, sugar and cement.