Federal Board of Revenue is extending its Track & Trace System and electronic monitoring initiatives to tile manufacturing units, textile spinning factories, and Green Leaf Threshing units nationwide, following successful implementation in tobacco, sugar, cement, and fertiliser sectors. The move is part of FBR’s broader strategy to strengthen tax compliance, increase transparency, and curb widespread evasion across high-risk industries. Officials say the tile sector alone accounts for an estimated Rs 30 billion in annual tax losses, highlighting the critical need for advanced monitoring solutions.
The expansion is expected to generate additional revenues of Rs 76 billion from the sugar industry and Rs 102 billion from the cement sector this year. The tobacco sector, particularly at the Green Leaf Threshing stage, has been identified as a major challenge, with losses estimated at Rs 80 billion annually due to illegal activities and gaps in compliance. To address these issues, FBR has issued detailed guidance for the installation of TTS across the targeted sectors, emphasizing the adoption of modern technologies to track production, prevent counterfeiting, and ensure accurate reporting of taxable goods.
As part of the initiative, FBR has released a Request for Information to identify technology solution providers capable of delivering DNA-based and forensic-grade authentication systems. These technologies are intended to strengthen traceability and anti-counterfeiting measures, while also enabling enforcement authorities to monitor production and sales in real time. The RFI invites input on a wide range of solutions, including Track & Trace Systems, production monitoring systems, secure identification and serialisation technologies, and mobile verification tools, reflecting the agency’s commitment to leveraging advanced tech for compliance purposes.
Officials expect the rollout of the extended TTS to significantly improve accountability in the sectors under review, ensuring that government revenues are better protected and that illegal practices are curtailed. By integrating digital monitoring across industries, FBR aims to create a more transparent and efficient tax ecosystem while supporting enforcement capabilities and providing regulators with real-time data for decision-making. The move aligns with broader government efforts to modernize regulatory frameworks through technology, ensuring that Pakistan’s industrial sectors operate under robust compliance mechanisms.
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