Prime Minister Shahbaz Sharif of Pakistan has denounced the Track & Trace system, a digital monitoring mechanism aimed at curbing tax evasion, as a profound deception inflicted upon the nation and its economy.
Initially introduced in 2019 to combat tax evasion within the cigarette industry, the Track & Trace system expanded its reach to other sectors, including fertilizers and sugar.
However, during a recent cabinet meeting, Sharif voiced his profound disappointment with the system’s efficacy, declaring it a dismal failure in delivering the anticipated benefits within the cigarette industry.
“The implementation of this system amounted to nothing short of a cruel hoax upon our nation,” Sharif remarked, highlighting that although the agreement for Track & Trace was forged in 2019, its execution was riddled with severe flaws.
Sharif lamented that the system had the potential to generate billions in revenue for the country but suffered from egregious mismanagement.
In response to the debacle, macroeconomic analyst Osama Siddiqui emphasized the colossal losses incurred by the nation, not only in terms of potential revenue but also in the squandered years that could have been dedicated to economic advancement.
Siddiqui urged the government to take decisive action against the principal offenders and to implement robust measures to combat illicit trade moving forward.
The alarming statistics further underscore the severity of the situation, with tax evasion in the cigarette sector soaring to 63%, resulting in a staggering loss of Rs 310 billion to the economy.
The failure of the Track & Trace system represents a significant setback in Pakistan’s ongoing battle against tax evasion, prompting urgent calls for reform and stringent enforcement measures to safeguard the nation’s economic interests.
