ISLAMABAD: The Federal Board of Revenue (FBR) announced a significant step towards curbing counterfeit products and enhancing tax collection through tax stamps.
In a statement released on Monday, FBR revealed the successful selection of a vendor to implement an electronic monitoring system, also known as a Track and Trace System, across various sectors.
This system, expected to be operational by July 2021, will involve the application of unique identification marks (UIMs) or tax stamps on products. FBR believes this initiative will be a “game changer” in the fight against counterfeiting and revenue generation.
Transparent Selection Process
The selection process for the IT-based Track and Trace System solution was meticulous and transparent. FBR received eleven initial bids, of which eight were deemed technically qualified based on pre-defined evaluation criteria. To ensure fairness, technical scores were publicly displayed for all attendees before opening the financial bids.
On February 1st, 2021, a seven-member licensing committee, led by Karamatullah Khan Chaudhry, publicly opened the financial bids submitted by the eight qualified applicants. Following a comprehensive evaluation that combined technical and financial scores, M/s. AJCL/Authentix/MITAS emerged as the “most advantageous bid” according to the Licensing Rules 2019 and PPRA rules 2004.
Targeted Sectors for Improved Tax Collection
The initial rollout of the Track and Trace System will focus on specific sectors with a high prevalence of counterfeiting and tax evasion. These sectors include Tobacco, Cement, Sugar, and Fertilizer. By implementing UIMs on products within these categories, FBR aims to establish a more robust system for tracking their movement throughout the supply chain.
This increased transparency is expected to discourage the production and sale of counterfeit goods, ultimately protecting consumers and safeguarding legitimate businesses. Additionally, the system will facilitate tax collection by ensuring proper identification and monitoring of taxable products.
The FBR’s initiative marks a significant step towards a more efficient and transparent tax collection system in Pakistan. The Track and Trace System, with its focus on combating counterfeiting and boosting revenue, is anticipated to have a positive impact on both consumers and businesses in the targeted sectors.
