FBR plans expansion of track-and-trace system to more high-risk sectors

The Federal Board of Revenue (FBR) is preparing to extend its Track & Trace System (TTS) to additional high-risk sectors as part of a broader effort to strengthen revenue collection, curb illicit trade, and improve transparency across industrial supply chains, according to experts familiar with regulatory reforms.

As per reports, the system relies on the use of Unique Identification Marks (UIMs), which are affixed to goods at the production stage and allow authorities to monitor production volumes and product movement across the supply chain, from manufacturing to retail. The electronically generated, tamper-resistant marks provide near real-time visibility of output and sales, enabling more accurate verification of tax declarations.

In sectors such as fuel, pharmaceuticals, beverages, and cement, experts said video systems cannot detect adulteration, track serialised products at scale, or establish legal product origin, functions considered essential for effective taxation and compliance.

Regulatory experts said the effectiveness of the TTS stems primarily from the security features embedded in UIMs. These marks generate unit-level data that allows enforcement agencies to independently verify production and sales, reducing reliance on self-reported figures by manufacturers. Products without valid UIMs can be quickly identified as non-compliant, facilitating targeted enforcement.

Sector assessments cited by officials show that the system has already produced tangible results. Authorities have detected undeclared production capacity, seized unstamped goods, and recovered smuggled or non-duty-paid stocks in sectors where the system is operational. 

The use of UIM-based data has shifted enforcement away from routine raids toward intelligence-led action.

Beyond revenue protection, experts noted that the system also benefits consumers by enabling verification of legitimate, tax-paid products. This, they said, helps distinguish genuine goods from counterfeit or illicit items, supports public health objectives, and strengthens confidence in branded products.