Shahbaz Sharif Labels Track & Trace as a Meaningless Farce

 

Controversy Erupts Over Pakistan's Track & Trace System

In a recent cabinet meeting, Prime Minister Shahbaz Sharif of Pakistan lambasted the Track & Trace system, a digital monitoring initiative aimed at combating tax evasion, labeling it a complete fraud on the nation and its economy.

Initially launched in 2019 within the cigarette industry and later expanded to other sectors like fertilizers and sugar, the Track & Trace system failed to meet expectations, according to Sharif. He expressed disappointment, citing its inability to deliver anticipated benefits, particularly within the cigarette industry.

Sharif criticized the flawed implementation of the system, highlighting that despite its potential to generate significant revenue for the country, mismanagement hindered its effectiveness.

Tax evasion within the cigarette sector alone has soared to 63%, resulting in a staggering loss of Rs 310 billion to the economy due to insufficient efforts to combat illegal manufacturers and enforce taxation.

Fawad Khan, spokesperson for Mustehkam Pakistan, an advocacy firm combating illicit trade and tax evasion, emphasized the need for identifying and penalizing individuals neglecting their duties within the system. He stressed that their misconduct had deprived the nation of billions of rupees, which could have been invested in crucial projects for human development.

The government faces mounting pressure to address these concerns and take decisive action to rectify the failures of the Track & Trace system, ensuring its effectiveness in curbing tax evasion and bolstering the economy.