The beverage industry relies on various packaging materials such as glass bottles, PET bottles, and tetra packs to package its products. The Federal Board of Revenue (FBR) has introduced a Track & Trace System to ensure the verifiability of each bottle or package through scanning. Additionally, the production data of each beverage unit is required to be available in real-time on FBR’s database.
Successful Implementation of Track & Trace System
The FBR’s initiative to implement the Track & Trace System for capturing Large Scale Manufacturing (LSM) across the country has already begun yielding positive results. In collaboration with its licensee Authentix Inc., US, and consortium partners AJCL Private Limited and MITAS Corporation of South Africa, the FBR has implemented Track & Trace solutions in several tobacco facilities and production lines, including Pakistan Tobacco Company, Philip Morris (Pak) Limited, Khyber Tobacco, and Souvenir Tobacco.
Increased Revenue and Challenges Ahead
According to FBR data, the implementation of the Track & Trace System has led to a 13 percent growth in revenue from the tobacco sector. The FBR collected Rs. 149 billion from July to May 2023, compared to Rs. 132.32 billion in the first 11 months of FY22. Similarly, the FBR has implemented Track & Trace solutions in numerous sugar facilities and production lines, resulting in a 31 percent increase in sales tax collection from the sugar sector during the crushing season. However, there are challenges in the implementation process, including non-compliance by some sugar mills and fertilizer plants, delays due to site readiness issues, and reluctance from the cement sector.
