FBR to launch track and trace system for digitization of economy and curbing counterfeit products
Pakistan’s Federal Board of Revenue (FBR) has signed a $120 million contract for track and trace system with AJCL Consortium.
The consortium comprising AJCL (Pvt) Limited, Authentix Inc. USA and Mitas Corporation of South Africa was declared as “the most advantageous bid”.
The contract signed at the FBR Headquarters in Islamabad on March 5 will operationalize the ‘Track and Trace Solution’ on tobacco, cement, sugar and fertilizer sectors from July 1, 2021.
The move is aimed at accelerating the digitization of economic activity, improving revenue forecasting and curbing counterfeit products in the market.
The system would bring 45 million tonnes of cement, over four billion sticks of tobacco cigarettes, four million tonnes of sugar and 30m tonnes of fertilizer into the tax net, FBR said.
Experts believe that installation of the track and trace system in the specified sectors would be a game changer in Pakistan as it would bring more than 45million tons of cement, more than 4 billion sticks of tobacco cigarettes, more than 4million tons of sugar and more than 30 million tons of fertilizer into the tax net.
“This system will enhance tax revenue, reducing counterfeiting and prevention of smuggling of illicit goods,” the FBR said in a tweet.
“Track and Trace involve implementation of a robust, nationwide, electronic monitoring system of production volumes by the affixation of more than 5 billion tax stamps on various products at the production stage, which will enable FBR to track the goods throughout the supply chain,” FBR spokesperson said.
The contract was signed by FBR Member (IR-Operations) Dr Muhammad Ashfaq Ahmed, Authentix CEO Kevin McKenna, Mitas Corporation’s Sten Bertelsen and AJCL CEO Omer Jaffer on behalf of their respective organizations.
Dr Ashfaq Ahmed said the FBR would be working closely with the AJCL consortium during the rollout of the programme across different industries on aggressive timelines.
“The program would help provide a transformational boost to the local economy, enhance revenue and make the tax collection process more transparent for the benefit of industry” as demonstrated in other countries, said Kevin McKenna of Authentix.
Mr. Omer Jaffer, CEO of AJCL, said that the consortium was looking forward to working with FBR to configure and implement the various components of the solution, including the tax stamp application and production monitoring equipment and ramping up the production of the specialized tax stamps that will act as unique identification marks on the products.
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