Recently, the Federal Board of Revenue (FBR) signed a contract with a consortium to launch the ‘Track & Trace Solution’ on tobacco, cement, sugar, and fertilizer sectors from July 1. The development is intended at expediting digitization of economic activity, raising revenue forecasting, and restricting counterfeit products in the market.
FBR Signs Contract with a Consortium to Launch Track and Trace System
The consortium including AJCL (Pvt) Limited, Authentix Inc. USA, and Mitas Corporation was cited as “the most advantageous bid” by the FBR on the base of the consolidated highest score in accordance with the Licensing Rules 2019 and PPRA rules 2004.
According to the FBR, about 45 million tonnes of cement, over 4 billion sticks of tobacco cigarettes, 4 million tonnes of sugar, and nearly 30m tonnes of fertilizer would be brought under the tax regime through this development.
The contract was signed by FBR Member (IR-Operations) Dr. Muhammad Ashfaq Ahmed, Authentix CEO Kevin McKenna, Mitas Corporation’s Sten Bertelsen, and AJCL CEO Omer Jaffer on account of their respective institutions.
In a tweet, FBR stated,
This system will enhance tax revenue, reducing counterfeiting, and prevention of smuggling of illicit goods. Track and Trace involve the implementation of a robust, nationwide, electronic monitoring system of production volumes by the affixation of more than 5 billion tax stamps on various products at the production stage, which will enable FBR to track the goods throughout the supply chain.
Dr. Ashfaq Ahmed told that the FBR would be operating closely with the AJCL consortium during the launch of the program across different industries on aggressive timelines.
On the other hand, Kevin McKenna said the development would assist in rendering a transformational boost to the local economy, improve revenue and make the tax collection process much more transparent.