PSMA, govt still at loggerheads over track and trace system in sugar industry.

ISLAMABAD -- The Federal government and Pakistan Sugar Mills Association (PSMA) are still at loggerheads over the mode of introduction of track and trace system in sugar industry as PSMA has proposed printing of local QR code on sugar bag instead of imported stamps.

'The imported QR printed tax stamps affixation, besides being expensive have complicated affixation process that will peel off as only Hermetical Sealing Fusion Technology can be applied on polypropylene bags. Because of the aforesaid fact, these stamps have never been used on polypropylene sugar bag,' said a letter written by Pakistan Sugar Mill Association to Member IR Operation Federal Board of Revenue.

PSMA has asked the Federal Board of Revenue (FBR) to replace imported stamps with a QR-code based system to save foreign exchange incurred on digital stamps and adopt cheaper and localised options. FBR had demanded the sugar mills to procure tax stamps and unique identification numbers, and install necessary equipment to implement the track and trace system at production facilities.

Through S.R.O. 250(I)/2019 issued by FBR on February 26, 2019 the board had amended Sales Tax Rules, 2006, to lay down the procedure for electronic monitoring, tracking and tracing of production, import and supply-chain of tobacco products, beverages, sugar, fertiliser and cement to contain tax evasion in these sectors. Earlier it was planned to implement the new track and trace system from July 1, 2021, however due to differences over the implementation mode it was not implemented so far.

'We thank you for the implementation of track and trace system in place of video electronic monitoring. We assure FBR of our continued support and highly appreciate your resolve to document the economy,' the letter added. 'We document that the printing of QR code on sugar bag is the only cost effective and practical solution,' he said

FBR has dropped the implementation of electronic monitoring system, as it was not...