ISLAMABAD: The Federal Board of Revenue (FBR) is planning to expand the use of the Track & Trace System (TTS) to more high-risk sectors to increase tax collection, stop illegal trade, and improve transparency in industries.
Experts involved in tax reforms say that FBR wants to apply TTS to sectors where tax evasion and undocumented production are common.
The Track & Trace System works through Unique Identification Marks (UIMs) that are placed on products at the production stage. These secure and tamper-proof marks allow authorities to monitor production almost in real time and track goods from factories to retail shops. This helps improve tax compliance, record-keeping, and audits.
Industry experts say the success of TTS mainly depends on the strong security features of UIMs. These marks provide accurate, product-level data, allowing authorities to verify actual production and sales instead of relying only on figures reported by manufacturers.
If a product does not have a valid UIM, it is considered non-compliant. This makes it easier for enforcement agencies to identify illegal, unstamped, or smuggled goods.
Experts say that when products can be tracked properly, taxes are collected more effectively, markets become fairer, and revenue losses are reduced.
According to official reviews, TTS has already produced positive results in Pakistan. Enforcement actions have uncovered undeclared machinery, seized smuggled cigarettes, and recovered unstamped sugar and fertiliser stocks. This shows a move away from random raids towards data-based enforcement.
Apart from helping the government, TTS also benefits consumers. UIMs allow buyers to check whether a product is genuine or tax-paid, which improves consumer trust, protects public health, and supports legitimate brands.
Experts, however, warned against relying only on video monitoring systems. While cameras can show activity, they cannot accurately measure production, identify individual products, or ensure full tracking. Video systems are also affected by poor lighting, dust, power failures, and camera blockages.
In sectors like fuel, beverages, medicines, and cement, video monitoring cannot detect adulteration or track products on fast production lines. Such systems are also expensive, need constant maintenance, and may raise privacy concerns.
Experts say global experience shows that the best approach is to use TTS based on unique identification marks as the main system, with video monitoring used only as a supporting tool.
They concluded that in Pakistan, the UIM-based Track & Trace System should remain the core method for monitoring production, while video analytics should only play a secondary role.
