Track & trace system critical for increasing Taxation:PM

March 16, 2021

456

Prime Minister Imran Khan chaired a Federal Cabinet meeting on Tuesday where he stressed on the need to implement a tracking and tracing system to eradicate massive tax evasion in critical sectors such as cement, sugar, fertilizer and tobacco.

While , he pointed out that the Federal Tax Service (FBR) has sought to implement the system for the past fifteen years, “but each time their efforts are sabotaged for one reason or another.”

The prime minister pointed out that only two companies pay taxes in the entire cigarette industry, while almost 40% of cigarettes are sold in black, adding that “FBR has confirmed the introduction of a tracking and tracing system by July this year, but now the Sindh High Court has ruled on the suspension of its action ”.

Prime Minister asked the Law Minister to inform the Supreme Court of the real situation with the lifting of the moratorium, since tax evasion cannot be verified without automation. “Due to tax evasion, we are forced to rely on indirect taxes, which leads to higher prices.”