Islamabad, Dec 11: Revenue collection from the sugar sector has risen by 28.5%, reaching Rs. 98 billion, following the adoption of the Track and Trace (T&T) System. The Federal Board of Revenue (FBR) has successfully rolled out the Automated T&T System across the sugar industry after three years of sustained efforts since the program’s inception.
According to sources, the Automated T&T System facilitates near real-time monitoring of production, ensuring transparency and accuracy in reporting. This advanced technology enables the FBR to access actionable production insights, aiding in identifying discrepancies and enforcing compliance.
During the current crushing season, the tax authorities proactively sealed production lines at non-compliant facilities, including notable units in Digri and Chashma, later unsealing them after compliance was achieved.
These enforcement measures highlight FBR’s dedication to ensuring regulatory adherence in the sugar sector, resulting in accurate production reporting and increased tax revenue.
The T&T System not only integrates the sugar industry into the digital compliance framework but also strengthens the tax collection process. It enhances visibility of production and supports data-driven decision-making, contributing significantly to the national exchequer. In 2023-24, FBR collected Rs. 98 billion in sales tax on local sugar supplies, up from Rs. 76 billion in 2022-23, marking a 28.5% increase.
The T&T System is a cutting-edge digital solution designed to monitor production in near real-time and ensure precise tax compliance across key industries.
Sources also reported a notable rise in tax collection from other sectors. Sales tax (domestic) from cigarettes increased by 64.3%, reaching Rs. 60.664 billion in 2023-24 compared to Rs. 36.92 billion in 2022-23. Federal Excise Duty (FED) on cigarettes surged by 66.9%, rising from Rs. 142.009 billion in 2022-23 to Rs. 237.073 billion in 2023-24.
Similarly, sales tax collection from the cement sector amounted to Rs. 66.619 billion in 2023-24, up 59.5% from Rs. 41.762 billion in 2022-23. Overall, net FED collection saw a 56.1% increase, climbing from Rs. 369.9 billion in 2022-23 to Rs. 577.4 billion in 2023-24. Consequently, FED’s share of FBR’s total tax collections grew from 5.2% to 6.2%.
