Islamabad: The Federal Board of Revenue (FBR) has issued a final deadline for cement manufacturers to fully integrate the Track and Trace System (T&TS).
As per the shared details, no cement bag will be allowed to leave any production site, factory, or manufacturing plant without the application of tax stamps or unique identification markings effective from April 30, 2024, according to reliable sources.
Collaborating with Licensee Authentix Inc. from the US and consortium partners AJCL Private Limited and MITAS Corporation of South Africa, the FBR has been actively working on implementing the T&T solution in the cement sector since 2022.
Numerous effective demonstrations highlighting the T&TS’s capabilities were carried out across various factories; however, there were delays encountered by cement manufacturers. It is noteworthy that approximately 70% of operational cement plants are located in the North Region, while the remaining 30% are situated in the South Region.
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At the moment, finalised cement products are subject to a 20% customs duty, an additional 6% customs duty, PKR 2 per kg Federal Excise Duty (FED), and an 18% sales tax. Moreover, the cement sector is also subjected to an 11% income tax.
The real-time production monitoring features of the T&TS mark a substantial departure from conventional retrospective auditing approaches. This transformative change enables tax authorities to have immediate and comprehensive access to data, promoting proactive decision-making and ensuring more precise tax assessments. The system’s centralised repository will provide tax authorities unprecedented visibility into the production landscape of the sector.
As a graduate in English Literature, Zohaib believes that words are not just a mere figment of imagination. It takes wisdom to be good at them. Following this reason, he is pursuing his career as Public Relations and Content Specialist at Zameen.com.
