Hi Everyone! I hope you are all doing well. Welcome back to another blog. In this article, we will talk on the topic in detail “Resistance from Cement Companies to Adopt Track and Trace System”. Cement companies in Pakistan resist the track and trace system. The government planned to monitor cement bags from manufacturing to end users.
According to sources, cement manufacturers in the country are resisting the implementation of the Federal Board of Revenue’s (FBR) track and trace system in their factories by providing unjustifiable reasons for the delay. These manufacturers have informed the FBR that the implementation of the system would be hindered by the hot, humid, and dusty environment.
At the recent FBR meeting with the cement association, the tax authorities made it clear to the industry that they must install the track and trace system in one production line per factory. After testing, the system will implement throughout the entire factory.
Resistance from Cement Companies
The track and trace system has been made operational by the fertilizer units, but it has limited importance because the government grants sales tax exemption on fertilizers. However, cement manufacturing plants require the installation of applicators for the system to become fully operational. Once we have put the applicators in place, we can fully utilize the track and trace system.
Sources state that the end of March 2023 marks the complete implementation of the track and trace system by the cement plants. The authorities had set a deadline of July 1, 2022, for the implementation of this system in the cement sector.
According to the regulations of the Federal Board of Revenue (FBR), licensees are responsible for all assets, tangible or intangible, including applicators, and services necessary for attaching unique identification markings or stamps, including their installation, operation, and maintenance. The licensee will bear the cost of these assets and services throughout the license period. Any assets that the licensee installs for the track and trace system will remain the property of the licensee.
FBR Rules dictate the use of unique identification markings. The markings must employ a non-removable anti-tampering substrate for the core material. The substrate must reveal evidence of any tampering attempt. Additionally, the stamp’s size must be suitable for use with most label applicators in the market.
By implementing this system, large-scale manufacturing and production in key sectors will undergo digital monitoring. It will prevent revenue leakages. And, reduce human intervention. It will lead to a transparent tax compliance system. And, result in a dependable tax compliance system throughout the nation.
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