The Federal Board of Revenue (FBR) has decided to install the track and trace system at one production line of each cement manufacturer for monitoring and documentation of the cement sector.
Under the FBR plan agreed with the cement manufacturing units, initially system will be installed at only one production line of each unit.
The equipment, specifically applicators would become operational at the manufacturing premises of cement factories. It has been decided that the system will not be simultaneously installed at all production lines of the entire cement industry.
The first phase of the installation of the system will be completed in the next 30 days.
The track and trace system became operational at the fertilizer units, but it has less significance due to sales tax exemption on fertilizers. However, the applicators are needed to be installed at cement manufacturing plants. Once the applicators are installed, the system of track and trace would become fully operational.
Sources told ProPakistani that the system is expected to become fully functional at the cement plants in the next few months.
The deadline for the implementation of the track and trace system was July 1, 2022, for the cement sector.
Under the Federal Board of Revenue (FBR) Rules, all assets (tangible/ intangible including applicators) and services that are required for the affixation of unique identification markings/stamps including installation, operation, and maintenance, will be the responsibility and at the cost of the licensee during the term of the license. The assets installed by the licensee for the purpose of a track and trace system shall belong to the licensee.
The core material of the unique identification markings must be made of a non-removable anti-tampering substrate so that the composition of the stamp reveals evidence of any attempt to tamper or stamp remove or crumbling considerable portions of the stamp. The size of the stamp should be compatible with most label applicators in the market, the FBR Rules added.
The system will result in digital monitoring of the large-scale manufacturing and production of these key sectors. Besides, preventing revenue leakages, it will help in minimizing human intervention and thus pave the way for a transparent and reliable tax compliance system across the country, they added.
