The Federal Board of Revenue (FBR) will roll out a Track & Trace (T&T) system for tobacco, cement, fertilisers and sugar from July 1 in a bid to enhance revenue collection in the country, a meeting of the Senate Standing Committee on Finance, Revenue and Economic Affairs was informed on Monday.
According to a report by Dawn, Member Operations Inland Revenue Dr Muhammad Ashfaq told the Senate body meeting chaired by Senator Farooq Naek to review various measures undertaken by the FBR to plug loopholes that allowed tax evasion that the next step will be a T&T system for beverages.
Dr Ashfaq while briefing on the T&T system said that it should be implemented as per the recommendations of the World Health Organisation (WHO) which has also suggested raising taxes on tobacco. There have been five attempts to launch the T&T system in the country, however it is finally being implemented now.
He said a consulting firm has been hired and added that the system would also help overcome issues of under-invoicing as well as expanding the tax base.
The committee recommended sending the Companies Amendment Bill 2020 to the House.
The FBR informed the committee that since the Covid-19 pandemic, the government has given Rs1,400 billion tax exemption.
According to the FBR, tax exemptions were also given in Europe and America as coronavirus spread.
