The Federal Board of Revenue (FBR) has quietly been pushing several reforms designed not just to raise numbers, but to make the tax system fairer for ordinary Pakistani shopkeepers, factory hands and small manufacturers who play by the rules yet feel the burden when others do not. These measures seek to tighten documentation and bring transparency across industries. After proving effective in sugar, cigarettes, fertilizer and cement, the FBR will extend its Track and Trace System to steel, pharmaceuticals, spices, biscuits and other packaged goods. For many producers this means clearer supply chains and fewer shadow sales. Officials say unique identification markings have already stopped tax evasion running into billions of rupees, money that could instead fund hospitals, schools and basic services, and protect honest businesses.
Regulatory experts say that the Track and Trace System has achieved remarkable success in effectively enforcing laws in Pakistan by identifying tax evasion, illegal trade of goods, and accurate production data. In recent times, the FBR has achieved major success against illegal tobacco, sugar, and other products. Several sugar mills’ production units were sealed for failing to affix Track and Trace stamps, while illegal cigarettes worth millions of rupees were seized across the country due to the absence of Track and Trace markings on their packets.
Experts associated with the regulatory system state that the Track and Trace System (TTS) has now evolved into a nationwide electronic monitoring framework. Through the installation of secure, sequential, and tamper-proof Unique Identification Marks (UIMs) at the production stage, it enables real-time monitoring of production volumes.
These identification marks allow enforcement agencies to monitor goods throughout the entire supply chain from the factory floor to retail outlets, resulting in significant improvements in legal compliance, documentation, and audit processes, and helping prevent tax evasion worth billions of rupees.
According to experts, when products are traceable, tax collection becomes possible, the market becomes fair and revenue leakage is systematically eliminated.
