Because the track and trace system that the Federal Board of Revenue (FBR) developed for the cigarette sector has not been fully adopted by the industry, the amount of illegal cigarette traffic is said to continue to increase rapidly.
They informed that the FBR had implemented a track and trace system for the four leading industries, which include the cigarette industry, the sugar industry, the cement industry, and the fertilizer industry. The purpose of this system is to increase tax revenue, reduce instances of counterfeiting, and prevent the smuggling of illegal goods.
The FBR is better able to keep track of the goods through the supply chain thanks to the implemented system.
However, when we talk about the tobacco sector, just three of the forty companies have implemented a track and trace system. On the other hand, the remaining ones haven’t been integrated into this system. Beginning on July 1, 2022, the tracking and tracing system was put into service.
According to representatives of the industry, the delay in implementing a track and trace system in the tobacco industry has caused significant income losses for the government.
In addition, it was said that the primary goal of the track and trace system had not been accomplished because its use has not been standardized across the whole industry.
On the other hand, the volume of illegal cigarette commerce has reached 40% in the country, making it the highest ratio in the Asian region.
