Islamabad: On Tuesday, Prime Minister Imran Khan activated the Tracking System (TTS) of the Federal Revenue Service (FBR).

TTS will help the government monitor the flow of sugar in factories to check for tax evasion.

The sugar industry has become the second industry to be included in the electronic monitoring system after cigarettes. FBR plans to include the beverage, cement, fertilizer, steel, and petroleum sectors into the system.

The Prime Minister said in his speech that people do not trust the country’s tax system, but he did not elaborate on the measures his government has taken in the past three years to restore people’s confidence in the tax system.

He said that Pakistan is the fifth largest charity donor country. "I am the biggest beneficiary of this system," he said, adding that people are more willing to do charity but are not willing to pay taxes.

"FBR must play a role in restoring people's confidence in the tax system," he added.

Mr. Khan said that the biggest problem facing the country is the lack of resources to manage its affairs. "We use loans to repay debts and repay debts," he said, adding that the country's sustainability is in jeopardy.

"We can't go on like this anymore. We are in a vicious circle. We need to use technology to generate the most revenue."

The Prime Minister stated that the FBR is expected to collect 6 trillion rupees in taxes this fiscal year. He said that among them, Rs3tr will be used for retirement and debt repayment, but the remaining amount is not enough for the country's infrastructure development and health and education expenditures.

Mr. Khan expressed his hope that the income figure can reach Rs8tr.

He emphasized the need to promote and strengthen the country’s taxation culture by assuring the people that their taxes will be used for the welfare of their children and not for the luxury of the ruler.

The Prime Minister stated that TTS will ensure the transparency of taxation and help restore people's confidence.

Shaukat Tarin, the prime minister’s financial and revenue adviser, said that so far, 76 companies have registered for TTS. He added that the FBR and the National Database and Registration Authority are working to expand the tax base through the use of modern technology.

Mr. Tallinn said that about 15 million people have been determined to be included in the tax net.

TTS will ensure electronic monitoring of production and sales in the tobacco, fertilizer, sugar and cement industries. This will help increase the transparency of the system and strengthen the country's tax collection.

Under this system, starting from November 11, sugar factories and manufacturing plants without seals and personal identification marks will not bring out production bags. FBR has notified this through specific rules.

The Unique Identification Mark (UIM) will be obtained/purchased from FBR's licensee AJCL/MITAS/Authentix Consortium.

The 1990 Sales Tax Law is read together with Article 150 ZF of the 2006 Sales Tax Rules, requiring FBR to notify the department that implements the date notification of the electronic monitoring of the production and sales of goods at all manufacturing sites in the manner prescribed by the law.

Published on November 24, 2021 Liming

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