In a bid to clamp down on tax evasion and ensure transparency in the tile manufacturing industry, the Federal Board of Revenue (FBR) has announced the implementation of the Track and Trace system. This move comes as part of the FBR’s ongoing efforts to electronically monitor the production and supply of tiles.
The decision was formalized with the issuance of S.R.O. 308(i)/2024 on Friday, amending the Sales Tax Rules, 2006. Inclusion of the tiles sector in the list of industries subjected to electronic monitoring through the Track and Trace system aims to curb sales tax evasion effectively.
Under the provisions of S.R.O. 308(1)/2024, the FBR has expanded the scope of Sales Tax Rules, 2006 to encompass electronic monitoring, tracking, and tracing of production, import, and supply-chain activities in various sectors. These sectors now include tobacco products, beverages, sugar, fertilizer, cement, petroleum products, steel, and the newly added tiles sector.
The Track and Trace system will operate in real-time, providing authorities with accurate insights into the production and distribution processes within the tile manufacturing industry. By leveraging advanced technology, the FBR aims to enhance tax compliance and deter illicit activities that undermine the integrity of the tax system.
This initiative underscores the FBR’s commitment to fostering a fair and transparent business environment while safeguarding government revenue. With the implementation of the Track and Trace system, stakeholders in the tile manufacturing sector are expected to adhere to regulatory requirements more diligently, contributing to the broader goal of economic stability and fiscal accountability.
