ISLAMABAD: The Federal Board of Revenue (FBR) is exploring the introduction of a video analytics–based production monitoring system to complement its existing Track and Trace System (TTS), Business Recorder reported, citing official sources.
According to officials, the proposed system would use cameras and artificial intelligence to count production output in real time. However, they emphasized that while video analytics could enhance operational monitoring, it lacks core features of the Track and Trace System—such as product authentication, anti-counterfeiting safeguards, and supply chain visibility beyond factory premises.
The Track and Trace System employs secure, machine-readable fiscal stamps embedded with cryptographic codes that ensure product authenticity from manufacturing to retail. Officials said the system has been instrumental in curbing tax evasion, under-reporting, and illicit trade.
They noted that the absence of visible fiscal markings under a video-only system would make it difficult for consumers to distinguish between tax-paid and untaxed goods, potentially weakening compliance incentives.
Official data highlights the success of TTS: in the sugar sector, tax revenues rose 33 percent in FY2021–22, with reported production increasing 34 percent to 7.51 million tons. Similarly, tobacco sector revenues surged from Rs61.79 billion in FY2022 to Rs83.5 billion in FY2023—a 26 percent jump following TTS implementation.
Sources said FBR intends to maintain the Track and Trace System across existing industries while potentially integrating video analytics as a supplementary tool under its broader digital monitoring framework.
