In a significant move aimed at bolstering tax compliance and curbing illicit activities in various sectors, Prime Minister Shehbaz Sharif has directed the elimination of all legal impediments obstructing the complete activation of the tax track and trace system.
The directive came during a comprehensive review meeting chaired by the Prime Minister himself on Monday.
The high-level meeting delved into the current status of the automatic tax system across key sectors including sugar, cement, fertilizers, and tobacco, while also addressing the challenges hindering its seamless implementation.
According to disclosures made during the meeting, the track and trace system has been successfully deployed in 14 major tobacco factories, underscoring its efficacy in combating tax evasion and smuggling activities. However, the closure of 12 non-compliant factories underscores the resolve to enforce compliance rigorously. While the system is operational in fertilizer industries, technical hurdles persist in its application within sugar and cement sectors, which authorities are actively addressing.
Furthermore, the meeting spotlighted recent raids on warehouses across the country to tackle smuggling activities, with Prime Minister Shehbaz Sharif stressing the imperative for law enforcement agencies to collaborate closely with the Federal Board of Revenue (FBR) in these endeavors.
Attended by notable figures including Federal Ministers Muhammad Aurangzeb and Ahad Khan Cheema, Planning Commission Deputy Chairman Jehanzeb Khan, and FBR Chairman Malik Amjad Zubair Tiwana, the meeting saw the establishment of an inquiry committee. Tasked with identifying obstacles to the full activation of the track and trace system within seven days, the committee is also mandated to probe into instances of tax evasion and recommend future actions for ensuring compliance in factories.
Prime Minister Shehbaz Sharif underscored the urgency of reinstating the track and trace system in key industries within the past two years, emphasizing stringent measures against non-compliant entities, including immediate closure. Additionally, he emphasized the need for comprehensive plans to extend the implementation of the system across all production lines in cement factories, alongside the formulation of a robust digital strategy for broader application.
The Prime Minister’s directives signify a resolute commitment to enhancing tax compliance mechanisms and combating illicit activities across various sectors. By prioritizing the removal of legal barriers and augmenting enforcement efforts, the government aims to foster a transparent and accountable business environment conducive to sustainable economic growth.
Prime Minister Shehbaz Sharif’s proactive stance underscores the government’s unwavering resolve to bolster revenue collection, combat tax evasion, and promote fair business practices, thereby paving the way for a more prosperous and equitable future for the nation.
