Track and Trace System

The Federal Board of Revenue (FBR) in Pakistan is responsible for collecting and administering various taxes, including income tax, sales tax, federal excise and customs duty. One of the significant challenges faced by the FBR is to track and trace the movement of goods within the country to ensure that all taxes due are paid correctly.

To address this challenge, the FBR envisaged to develop a Track and Trace System (TTS) that will enable it to track, monitor the production and sales in sugar, tobacco, fertilizer and cement in the first phase with a plan to extend it to further sectors. The system will use modern technologies like barcodes, unique identification number (UIM), and MIS system to track & monitor the production and sales in real time and ensure that they comply with all relevant tax regulations.

The Track and Trace System will be designed to accommodate different types of goods and commodities, including beverages, POL products, pharmaceuticals, and other high-value items. It will be integrated with the FBR's existing IT infrastructure/Data center, to ensure seamless data exchange and efficient processing of tax-related information.

“Track and Trace involves implementation of a robust, nationwide, electronic monitoring system of production volumes by affixation of billions tax stamps/barcodes on various products at the production stage, which will enable FBR to track the goods throughout the supply chain,”

The Track and Trace Solution is to be rolled out across the Tobacco, Cement, Sugar, Fertilizer, Beverages, POL products and Steel Sectors from 1st July 2021 in Pakistan with a view to enhancing tax revenue, reducing counterfeiting and preventing the smuggling of illicit goods through the implementation of a robust, nationwide, electronic monitoring system of production volumes and by the affixation of billions tax stamps/barcodes on various products at the production stage, which will enable FBR to track the goods throughout the supply chain.

Overall, the track and trace system will be a critical tool for the FBR to achieve its goal of enhancing tax compliance and increasing revenue collection. The successful implementation of the system will contribute to the country's economic growth and help the government to provide better services to its citizens.

The track and trace system (TTS) implemented by the Federal Board of Revenue (FBR) in Pakistan is aimed at improving tax compliance and reducing the prevalence of counterfeit goods in the country. The system has several achievements and programs, including:

Implementation of a Production Monitoring System (PMS): The FBR has implemented a Track & Trace System (TTS) in three sectors i-e Sugar, Tobacco and Fertilizer that uses technology to track the production of goods in the country. The system uses unique identification mark to track production at the factory sites and gets live matrix of production.

Increased transparency: The Track and Trace System (TTS) has increased transparency in the production data by making it easier to digitally monitor the production volumes. This has reduced suppression of production which minimizes the evasion.

Improved tax compliance: The system has made it easier for the FBR to monitor the production of goods and identify potential tax evaders. This has increased tax compliance and revenue collection for the government.

Reduction in the prevalence of counterfeit goods: The system has made it more difficult for counterfeiters to produce and distribute counterfeit goods in the country. This has protected consumers and helped legitimate businesses to thrive.