At Cigarette Manufacturing Sites Track and Trace System Is Being Installed By FBR

Cigarette Manufacturing Sites

The track and trace system is being installed at 23 operational cigarette manufacturing sites in Pakistan and Azad Jammu and Kashmir by the government.

The system’s installation at two multinational corporations’ manufacturing facilities is nearly complete. On the cigarette packs produced by these international manufacturing corporations, tax stamps are now placed. The technology is also being used at the Khyber Tobacco Company.

The Peshawar High Court has issued a stay order on the tripartite agreements with the FBR that were to be inked by four small units in Mardan. Individually, the remaining tiny units in Mardan and the KPK are signing the aforementioned tripartite agreements with the FBR.

Azad Kashmir’s tax officials have also decided to develop a track-and-trace system at businesses operating within the AJK’s jurisdiction. All produced cigarettes without tax stamps coming from AJK to the tariff regions of the rest of Pakistan will be confiscated by the FBR. As a result, units operating in the AJK would be unable to sell full supplies of cigarettes without tax stamps within the AJK’s borders. Only cigarette cartons with tax stamps would be permitted to enter the AJK’s territorial authority.

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From April 30, 2022, the FBR has directed cigarette manufacturers not to remove tobacco products from production sites, factory premises, or manufacturing plants without first applying tax stamps/Unique Identification Marking (UIMs) obtained from the FBR’s licensee M/s AJCL.MITAS/Authentix Consortium.

The FBR is required to notify the date for the implementation of electronic monitoring of production and sales of goods in the manner prescribed by law on all manufacturing sites of notified sectors under section 40C(2) of the Sales Tax Act, 1990, and Rule 150ZF of the Sales Tax Rules 2006, according to the FBR.

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