The Federal Board of Revenue (FBR) has taken a significant step towards combating sales tax evasion in the tiles sector by implementing the Track and Trace system. This system will electronically monitor production and supplies of tiles from manufacturing units. An amendment to the Sales Tax Rules, 2006, outlined in SRO 308(i)/2024, facilitates this move, extending electronic monitoring to auxiliary products of cement as well.
According to sources, the FBR’s decision to include the tiles sector in the Track and Trace system comes amid economic challenges, including the closure of the entire tiles industry in Punjab due to factors such as economic recession and costly gas supply issues. This measure aims to enhance transparency and accountability in the sector, ensuring compliance with tax regulations and curbing tax evasion practices.
