Prime Minister Imran launches system to control tax evasion in sugar industry

ISLAMABAD: Prime Minister Imran Khan inaugurated a Federal Board of Revenue (FBR) track and trace system (TTS) on Tuesday.

The TTS will help the government monitor the movement of sugar from factories to control tax evasion.

The sugar industry has become the second sector after cigarettes to be subject to the electronic surveillance system. The FBR plans to integrate the beverage, cement, fertilizer, iron and petroleum sectors under this regime.

Speaking on the occasion, the Prime Minister said that the people had no confidence in the country’s tax system, but he did not specify what measures his government had taken to restore the people’s confidence in the tax system. tax system over the past three years.

He said Pakistan was the fifth largest country in terms of charitable donations. “I am the biggest beneficiary of this system,” he said, adding that people preferred to do charity but were unwilling to pay taxes.

“FBR will have to play a role in restoring citizens’ confidence in the tax system,” he added.

Mr Khan said the biggest problem facing the country was the scarcity of resources to run its affairs. “We are resorting to borrowing to pay our debt and service it,” he said, adding that the sustainability of the state was at risk.

“We can’t go on like this. We are stuck in vicious circles. We must opt ​​for the use of technology to generate maximum revenue.

The Prime Minister said that the FBR is to collect Rs 6 trillion in taxes in the current financial year. Of this amount, he said, Rs3tr would be used for debt repayment and servicing, but the remaining amount was insufficient for infrastructure development and health and education spending in the country.

Mr. Khan expressed hope that the revenue collection figure would reach Rs8tr.

He stressed the need to promote and strengthen the tax culture in the country by assuring people that their taxes would be spent on the welfare of their children and not for the luxuries of rulers.

The Prime Minister claimed that the TTS would provide transparency in tax collection and help restore people’s trust.

The prime minister’s finance and revenue adviser, Shaukat Tarin, said 76 companies had registered for the TTS so far. The FBR and the National Database and Registration Authority are working to broaden the tax base through the use of modern technology, he added.

Mr Tarin said around 15 million people had been identified who could be brought into the tax net.

The TTS will electronically track production and sales in the tobacco, fertilizer, sugar and cement sectors. This will help bring transparency to the system and improve the country’s revenue collection.

Under this system, no bag of sugar production will be taken out of the factory and manufacturing plant without a stamp and individual identity mark from November 11. The FBR has already notified this through specific rules.

Unique Identification Markings (UIMs) must be obtained/obtained from FBR Licensee AJCL/MITAS/Authentix Consortium.

The Sales Tax Act 1990, read together with Rule 150 ZF of the Sales Tax Rules 2006, requires the FBR to notify the date of implementation of electronic monitoring of the production and sales of goods of the manner required by law at all manufacturing sites. notified sectors.

Posted in Dawn, November 24, 2021

Rachel J. Bradford