LAHORE: The government must strictly enforce the implementation of the Track and Trace (T&T) System in the cigarette manufacturing sector, which has the potential to generate over 550billions of rupees per annum by curbing illicit trade in the cigarette sector.
It may be added that 84 multinational and national companies have announced their quota through the Pakistan Tobacco Board (PTB), setting a target of purchasing 77.322 million kilograms this year. However, only three cigarette manufacturers have implemented the track and trace system on their production lines.
“The lack of across-the-board implementation of the track & trace system in many industries highlights the non-seriousness of the government towards curbing illicit trade and increasing tax collection through this system,” said Osama Siddiqui, a macroeconomic analyst.
“It is beyond logic that the government is approving the quotas of manufacturers that are not installing Track & Trace System, whereas it should have linked the approval of quota to the full implementation of the system,” he said, adding:
“The government should make a comprehensive strategy to curb illicit trade, which may include strengthening border control and enforcement mechanisms, stricter enforcement at the local level, imposing fines for non-compliance with regulations and enhancing track and trace systems.” It is pertinent to mention that the International Monetary Fund (IMF) has also shown concerns about the lack of implementation of the Track & Trace system in the tobacco sector, as this sector can generate significant revenues for the national exchequer if illicit trade is curbed.
Copyright Business Recorder, 2024
