Track-and-Trace troubles

It was a strange sight watching a ranking officer of the Federal Board for Revenue (FBR) receive applause as he took the dais at an event organised by the Society for the Protection of the Rights of the Child (SPARC). What does an Additional Director of the FBR’s Track and Trace Project have to do with advocating for children’s rights? 

The answer might surprise you: Big Tobacco. The 1st of June is marked as the international day for ‘No Tobacco’. The event organised by SPARC was meant to raise awareness regarding the dangers passive smoking poses to the health of children. Mr Sarfaraz was present at the event because of a recent achievement by the FBR — they have managed to increase the amount of tax they collect from tobacco producers. 

The revenue board claims that behind this success is a ‘Track-and-Trace’ or ‘T&T’ system that they have been in the process of implementing since late 2021. And it isn’t just tobacco. As part of Pakistan’s commitments to the IMF, T&T systems have been introduced in the cement, fertiliser, and sugar industries as well in addition to tobacco. In fact, sources within the FBR have told Profit that by their estimation they can collect around Rs 200 billion tax by implementing T&T in five sectors including petroleum, tea, pharmaceutical, tyres and spices.