The Federal Board of Revenue (FBR) has announced the extension of its Track and Trace system to the tiles manufacturing sector, aiming to enhance electronic monitoring of production and supply chains to combat sales tax evasion.
In a recent move, the FBR issued SRO 308(i)/2024, which amends the Sales Tax Rules of 2006, signifying a significant step towards ensuring transparency within the tiles sector.
This decision also brings auxiliary cement products under the purview of the Track and Trace system, further broadening the scope of sectors under stringent monitoring for tax compliance.
According to sources, this inclusion aims to mitigate the risks of tax evasion, providing a more accurate and real-time oversight of manufacturing outputs and supplies.
The integration of the tiles sector into the Track and Trace system was announced amidst a challenging period for the industry, particularly in Punjab, where the entire tiles sector is reportedly facing closure.
The economic downturn, coupled with the high costs of gas supply, has severely impacted the industry’s operations, raising concerns about the timing and implications of this new regulatory measure.
According to sources, this inclusion aims to mitigate the risks of tax evasion, providing a more accurate and real-time oversight of manufacturing outputs and supplies.