Islamabad: The Federal Board of Revenue (FBR) has decided to expand the scope of its Track and Trace System (TTS) beyond the sugar, cement, fertilizer, and tobacco sectors to include industries such as steel, pharmaceuticals, spices, biscuits, and other packaged goods. The move comes after the system’s proven success in curbing tax evasion and ensuring compliance in the previously covered sectors.
According to FBR sources, the Track and Trace System uses unique identification marks on products, which have enabled the authority to prevent billions of rupees in tax leakage. By implementing this system, the FBR has significantly reduced illegal trade, ensured accurate production reporting, and strengthened regulatory oversight across multiple industries.
Regulatory experts note that the TTS has been highly effective in enforcing laws related to the production and sale of goods. In recent years, the FBR has reported major successes against illegal tobacco, sugar, and other commodities. Several sugar mills had their production units sealed for failing to affix the mandatory TTS marks, while large quantities of smuggled cigarettes lacking TTS verification were confiscated nationwide.
Experts associated with the regulatory framework explain that the Track and Trace System now functions as a national electronic monitoring platform, enabling real-time oversight of production through tamper-proof, sequentially coded Unique Identification Marks (UIMs). These UIMs allow authorities to monitor the entire supply chain, from factory floors to retail outlets, ensuring legal compliance, proper documentation, and streamlined audit processes.
The presence of traceable identification marks ensures that products are trackable throughout the supply chain, providing transparency and accountability. This system not only improves tax collection but also promotes fair market practices, prevents revenue loss, and allows authorities to systematically tackle illegal trade.
Regulatory experts emphasize that when products are traceable, tax collection becomes efficient, markets operate fairly, and losses in revenue are minimized. The FBR’s expansion of the Track and Trace System reflects a continued commitment to strengthening compliance, reducing illegal trade, and safeguarding government revenues.
