The Prime Minister’s office has set up a five-member committee following the prime minister’s orders to understand why there’s been a hold-up in completely launching the Track and Trace System (T&TS) across key industries. This system is crucial for preventing revenue losses.
This group’s job is to find out why there are delays and who is responsible. They will look into how Federal Board of Revenue (FBR) officials might have contributed to these hold-ups through gaps in the contract’s terms, leading to unresolved technical problems and delays.
The committee will also review how vendors were chosen, pointing out the mismatch between the system’s needs and the technical solutions offered. They’ll investigate any contract issues from both FBR and the vendor’s side, which caused delays and inadequate results, and will suggest what to do next. This may include ending the current vendor’s contract due to poor performance and finding a new top-notch vendor with relevant expertise.
Despite obstacles, even partial use of T&TS in the sugar, fertilizer, and tobacco industries has significantly helped the revenue authority boost tax collection. The authority collected Rs. 7,164 billion in FY23, up from Rs. 6,148 billion in FY22, and has already exceeded its nine-month target for FY24 by 30%.
Challenges like legal hurdles, delays in agreements, and acquiring necessary machinery have slowed down the system’s full adoption, leading to financial losses for the government. Some FBR elements appear to be aiding industries in postponing the system’s implementation, including repeated deadline extensions to the cement sector without penalties.
The strong opposition the T&TS faces highlights its effectiveness. Despite resistance and limited enforcement, the need for a full rollout remains, backed by the IMF. FBR is considering stricter enforcement, including penalties for non-compliant producers and monitoring distribution and retail.
Plans to extend the system to other sectors like fuel, which could also apply to pharmaceuticals, beverages, and consumer goods, are being discussed. For the latest Real Estate News and Blogs, visit Realtorspk blogs.
