Sunday, September 25, 2022

FBR unable to impose IMF condition to launch TTS in 5 sectors

The Federal Board of Revenue (FBR) is unable to enforce the International Monetary Fund (IMF) conditions to launch a Tracking System (TTS) in five sectors as of 1 July.

FBR, according to a private TV broadcaster, had to launch TTS in five sectors to maintain control of production in the sugar sector and the fertilizer, tobacco, cement, and beverage sectors. They claimed that the companies approached the court against TTS’s bids and claimed that TTS was biased and unfair.

According to reports, the long-awaited tracking and tracing system could not be granted in the last decade, despite several efforts. It was a mandatory condition to put a tracking and tracing system to prevent tax evasion now under the IMF program.

Moreover, FBR had given guarantees to the IMF to apply the TTS from 1 July.

According to the FBR website, “The Track and Trace Solution will be launched in the Tobacco, Cement, Sugar and Fertilizer Sectors from July 1, 2021, in Pakistan to increase tax revenue, reduce counterfeiting, and preventing the smuggling of illicit goods through the implementation of a robust national electronic monitoring system of production volumes and the affixing of more than 5 billion tax stamps on various products in the production phase, which will allow FBR to track the goods throughout the supply chain.

It can be mentioned here that FBR last year, in February, received a financial tender to put in a tracking and monitoring system (TTS) for the main tax evasion sectors, including tobacco, sugar, cement, fertilizers, and beverages.

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