INNOVATION and use of latest technology, especially the installation of Trace and Track System (TTS) by the Federal Board of Revenue (FBR) is proving to be a watershed development in enhancing the country’s revenue collection.
This process of digitalization must continue to avoid tax evasion and bring the potential tax payers to the tax net besides facilitating the honest taxpayers.
Achieving yet another important milestone, the FBR has registered thirty-three percent growth in Sales Tax from Sugar Sector through the TTS.
The innovative digital monitoring system of sugar production has been implemented over 79 sugar mills, having 151 production lines nationwide.
Owing to this transparent electronic monitoring of production, all sugar mills had to declare their actual crushing and production during the current crushing season.
Therefore, as a result of this digital intervention, the sugar mills produced record high sugar i.e.7.51 Million Tons (up to 24.03.2022) as against 5.63 Million produced during last crushing season, showing an increase of 34 percent.
Likewise, FBR has collected Sales Tax amounting to Rs.26.5 billion from December 2021 to March 2022 of current crushing season as against Rs.19.9 billion collected during the corresponding period in the last crushing season, registering an increase of Rs.6.59 billion which comes to 33 percent growth.
Prime Minister had himself launched TTS in November last year in the sugar sector.
Thereafter, no sugar bags were allowed to be removed from the factory premises and sold in the market without tax stamps.
The FBR vigilance and monitoring is also praiseworthy as it also foiled all attempts by certain quarters to sell the unstamped bags.
As the TTS has proved to be a successful model, we will suggest it should be installed in other important sectors such as cement and fertilizers to improve revenue as well as curbing counterfeit products in the market.
As is stated often, our tax to GDP ratio is very low when compared with other countries including in the region and if we really want to take forward the country we will have to enhance it up to twenty percent.
Whilst the seriousness of Finance Minister Shaukat Tarin in this regard is praiseworthy, responsibility also rests with us to pay taxes honestly for the sake of the country.
It is only then the government will have the fiscal space to carry out development projects and provide relief to the marginalized segments of the society.