The revenue collection from the sugar sector has increased by 28.5 percent to Rs. 98 billion after implementation of the Track and Trace system.
Sources told ProPakistani that the Federal Board of Revenue (FBR) has successfully implemented the Automated Track and Trace (T&T) System across the sugar sector after three years of dedicated efforts since the program’s inception.
Sources said that the automated T&T System is designed to provide near real-time production monitoring, ensuring transparency and accuracy in reporting. This breakthrough technology enables FBR to gain actionable insights into production data, which aids in identifying discrepancies and enforcing compliance.
Sources said that the tax department, during the current crushing season, has taken proactive measures by sealing production lines at non-compliant facilities, including prominent units in Digri and Chashma and later on unsealed them after fulfilling the requirements.
These enforcement actions underscore FBR’s commitment to ensuring that the sugar sector adheres to regulatory requirements, reflecting accurate production data and augmenting tax revenue.
The implementation of the T&T System not only ensures the inclusion of the sugar sector in the digital compliance network but also contributes to a more robust tax collection framework. The system plays a pivotal role in bolstering the national exchequer by enhancing the visibility of production and enabling data-driven decision-making.
Sources said that the tax department has collected Rs. 98 billion sales tax (on local supplies) from sugar sector in 2023-24 as compared to Rs76 billion in 2022-23, reflecting an increase of 28.5 percent.
The Track and Trace System is a state-of-the-art digital solution designed to monitor production in near real-time and ensure accurate tax compliance across key industrial sectors.
Sources said that the FBR has collected Rs. 60.664 billion sales tax (domestic) from cigarettes during 2023-24 as compared to Rs. 36.92 billion in 2022-23, reflecting an increase of 64.3 percent.
On the other hand, the collection of the Federal Excise Duty (FED) from cigarettes stood at Rs. 237.073 billion in 2023-24 as compared to Rs. 142.009 billion in 2022-23, reflecting an increase of 66.9 percent.
Meanwhile, the sales tax collection from cement sector amounted to Rs. 66.619 billion during 2023-24 against Rs. 41.762 billion against Rs. 41.762 billion in 2022-23, showing an increase of 59.5 percent.
Net collection from the Federal Excise Duty (FED) surged by 56.1 percent, rising from Rs. 369.9 billion in 2022-23 to Rs. 577.4 billion in 2023-2024. Consequently, the FED’s contribution to FBR’s overall tax collections increased from 5.2 percent to 6.2 percent.
The post Tax Collection from Sugar Sector Jumps Nearly 30% After Track and Trace System appeared first on ProPakistani.
#Tax #Collection #Sugar #Sector #Jumps #Track #Trace #System,
