Inquiry Reveals FBR Has Failed to Implement Track and Trace System

A comprehensive inquiry into the failure to implement the Federal Board of Revenue’s (FBR’s) Track and Trace System has made considerable headway. A five-member committee has submitted its report to the Prime Minister’s Office, well-informed sources told ProPakistani. Prime Minister Shehbaz Sharif has sought a detailed briefing from the committee regarding the findings. According to sources close to the matter, the report does not uncover evidence of corruption but rather points to a deficiency in technical expertise within the FBR. The inquiry highlights technical shortcomings in the implementation process, noting that the licensed company responsible for the task failed to execute the system effectively, while the vendor did not adhere to proper stamping procedures. The investigation reveals that over the past two years, the FBR has struggled to implement the Track and Trace System across four key sectors: cigarettes, cement, sugar, and fertilizer. The committee’s recommendations emphasize the urgent need for the FBR to bolster its technical capabilities, suggesting the recruitment of industry experts to ensure the system’s success. The Track and Trace system was introduced by the FBR in July 2021 across various sectors including tobacco, cement, sugar, fertilizer, beverages, POL products, and steel. The initiative aimed to bolster tax revenue, combat counterfeiting, and curb the smuggling of illicit goods through the establishment of a robust electronic monitoring system. By affixing billions of tax stamps and barcodes on products during the production stage, the FBR intended to track goods throughout the supply chain effectively.