ISLAMABAD – Prime Minister Imran Khan Tuesday emphasized the need for introducing track and trace system to avoid massive tax evasion in the country.
The premier while chairing the cabinet meeting said that the system also aimed at curbing tax evasion in major sectors such as sugar, cement, fertilizers and tobacco industry.
The premier highlighted that the Federal Board of Revenue has been making efforts to launch the system over the last fifteen years but it was blocked every time when it tried to implement it.
He also pointed that only two companies of cigarette industry are paying tax while nearly 40 per cent smuggled cigarettes are being sold in the country.
The FBR was aimed at rolling out the system by July this year but now the Sindh High Court (SHC) has issued a stay order, barring its launch.
The premier directed the Law Minister Farogh Naseem to brief the high court about the system in order to remove the stay order as tracing tax evasion without automation is not possible.
Due to tax evasion, the government has to impose indirect taxes which lead to price hike.
Talking about electoral reforms, the prime minister said that electronic voting machines have become inevitable to ensure transparency in the elections.