ISLAMABAD: The Pak­istan Sugar Mills Associa­tion (PSMA) has asked the Federal Board of Revenue (FBR) to discard the Track and Trace (T&T) System and instead adopt cheaper and localised options.

In a letter to the FBR, PSMA chairman Iskander Khan suggested that the revenue body should replace imported stamps with a QR code-based system to save precious foreign exchange incurred on procuring digital stamps and adopting modern technology.

The Sales tax General Order (STGO) No. 04 issued on March 11, 2021 regarding implementation of T&T system on sugar products demanded mills procure tax stamps/unique identification marking (UIM) from its authorised licensee as well as install the equipment to implement the tracking system at their production facilities.

The FBR had issued SRO 250(I)/2019 on Feb 26, 2019 to amend the Sales Tax Rules, 2006 to lay down procedure for electronic monitoring, tracking and tracing of production, import and supply-chain of tobacco products, beverages, sugar, fertiliser and cement to contain tax evasion in these sectors.

It was observed that the proposed system of “Trace and Track” involves valuable foreign exchange to import stamps to be affixed on sugar bags at the production line, the PSMA said in its letter.

The letter added that the association had signed an MoU in October 2020 with the FBR to facilitate the documentation of sugar, but it could not be implemented as shortlisted vendors were not equipped to install the desired T&T system.

Published in Dawn, March 25th, 2021