THIS is with reference to the recent decision of the Sindh High Court (SHC) regarding suspension of the contract awarded by the Federal Board of Revenue (FBR) related to the track and trace system to control tax evasion in various sectors.

The SHC stay order is a positive step in the interest of impartiality and is worth the appreciation because it is obvious that the bidding process instituted by the FBR was all along rather lopsided and seemed to have favoured only one party.

One understands that putting in place a track and trace system is one of the conditions which the International Monetary Fund (IMF) has imposed on Pakistan if the country is to procure further funding from it. Care was also not taken in awarding the contract to the said party as there was a clear conflict of interest and this seemed to have an impact on the other bidding parties rather negatively.

It is worth noting that the FBR has made many attempts to control tax evasion in sectors like tobacco, cement, fertiliser and sugar, and a track and trace system has been considered a must if such tax evasion is to be curbed.

It is to be hoped that in the coming days, a more balanced bidding system will be brought into play by the FBR.

Aqam-ud-Din Khan
Karachi

Published in Dawn, March 26th, 2021