FBR sets a new deadline for Cement manufacturers to implement Track & Trace System.

FBR sets a new deadline for Cement manufacturers to implement Track & Trace System

ISLAMABAD: The Federal Board of Revenue (FBR) has given cement manufacturers an additional timeframe to fully adopt the Track and Trace System (T&T System), setting a new compliance deadline of April 30, 2024. Initially set for December 31, 2023, the implementation encountered challenges across the cement industry, with failed attempts to establish the system across all production lines. Only partial implementation was achieved, with a single line at each company operational with the T&T System.

Following discussions between the FBR and cement industry representatives at FBR Headquarters, the industry expressed concerns and requested an extension. In response, the FBR has agreed to postpone the full implementation date, ensuring that no cement bag will be distributed from factories without specific tax stamps and unique identifiers after this new deadline.

The FBR, collaborating with its Licensee Authentix Inc, US, alongside AJCL Private Limited and MITAS Corporation of South Africa, has been working persistently to roll out the T&T solution in the sector since July 1, 2022. Despite a series of successful demonstrations to cement manufacturers, full sector-wide execution has not yet been achieved.

The T&T System promises to revolutionize tax auditing, shifting from traditional methods to real-time production monitoring, affording the FBR current, complete data for proactive enforcement and precise tax assessments. This advancement is poised to grant the tax authorities unparalleled oversight of the cement industry’s production activities. Cement products are currently subject to a 20 percent Customs duty, an additional 6 percent Customs duty, a Rs 2 per kg Federal Excise Duty (FED), and an 18 percent sales tax, in addition to an 11 percent income tax imposed on the sector.

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