Sugar industry opposes track and trace system

Published
9
The sugar industry has claimed that pasting of TTS sticker stamps on sugar bags would not be feasible as these will come off and eventually benefit tax evaders. — Reuters/File
The sugar industry has claimed that pasting of TTS sticker stamps on sugar bags would not be feasible as these will come off and eventually benefit tax evaders. — Reuters/File

ISLAMABAD: In a bid to eliminate tax evasion in key sectors of the economy, the Federal Board of Revenue (FBR) has initiated consultations to implement the Track & Trace System (TTS) in production units. The first meeting in this regard will be held at the FBR headquarters on Monday (tomorrow).

The FBR has invited representatives of five sugar mills for consultations on the TTS along with the Pakistan Sugar Mills Association (PSMA).

However, the sugar industry has already expressed reservations over the move and claimed that pasting of TTS sticker stamps on sugar bags would not be feasible as these will come off and eventually benefit tax evaders.

Soon after becoming the chairman of FBR, Muhammad Ashfaq Ahmed had initiated the process of implementing TTS in tobacco, cement, sugar and fertiliser sectors.

However, the sugar industry has opposed the move, claiming that the new technology could not be applied to the polypropylene bags as the stickers will not stick to them.

In a letter addressed to Prime Minister Imran Khan, the Pakistan Polypropylene Woven Sack Manufactures Association (PPWSMA) sought support against the implementation of TTS and instead urged for printing the Quick Response (QR) code at the bags.

In the letter, PPWSMA Chairman Iskendar Khan, who is also the chairman of PSMA, said, “We have requested the FBR to place a mandatory requirement for all the polypropylene factories to print QR codes on bags produced for sugar, fertiliser, cement, wheat flour, wheat, pulses, rice and animal feed etc.”

The installed QR code machine will be connected with a computer system having software to generate sales invoice showing price and quantum of sales tax which is documented in the QR code be verifiable/readable via mobile phone application enabling the FBR to trace back each and every polypropylene bag produced for industrial packaging.

Published in Dawn, August 29th, 2021

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

AJK outlook
Updated 13 Aug, 2026

AJK outlook

AS the staggered polls for the AJK Legislative Assembly enter their final stretch, it appears that the PML-N is in a...
Food costs
13 Aug, 2026

Food costs

THE State Bank’s warning that domestic food prices could rise more than expected in the near term deserves urgent...
Denied a future
13 Aug, 2026

Denied a future

FIVE years after the Taliban returned to Kabul, the world is still issuing statements while a generation of Afghan...
Mideast outreach
Updated 12 Aug, 2026

Mideast outreach

OVER the past few days, Pakistan has been going the extra mile to assure Iran that the Makkah Joint Defence ...
Nutrition emergency
12 Aug, 2026

Nutrition emergency

MALNUTRITION has become one of the biggest obstacles to Pakistan’s development. Around 40pc of children under five...
Housing deficit
12 Aug, 2026

Housing deficit

THE federal cabinet’s zoning directive has the potential to be the most consequential decision in the redefinition...