Introducing new technology has not been a major issue for Pakistan. However, having the correct system to make that technology useful and work on its implementation has always been a challenge for us as a nation. Tax evasion and corruption have been a bane for ages, and the Track and Trace System (TTS) by the FBR was supposed to be a beacon of hope.

Utilising modern technologies like barcodes and unique identification numbers, TTS allows for tracking the movement of goods and ensuring tax compliance, countering counterfeits, and holding multinational corporations like PepsiCo and Nestle accountable for their environmental impact by monitoring their plastic waste.

However, the implementation of the TTS has been marred by failures and compromises, particularly under the previous PTI government. The system was meant to protect the public and curb the illicit trade of goods like tobacco, but the FBR cannot enforce such a system uniformly if they cannot penalise those who do not comply. This undermines the purpose of the TTS, and the failure of the FBR not only loses the government billions of rupees every year but also emboldens our tax evaders, furthering the culture of impunity that has plagued our nation for so long.

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The PM recently condemned the shortcomings of the FBR and its TTS in the cabinet this past Friday. It is good to see that our leaders are holding accountable those responsible for obvious negligence, but it will be for naught if the FBR does not rectify its mistakes moving forward. We need a comprehensive overhaul here, replacing the current system with one that holds all companies accountable for their corporate responsibility and tax compliance, regardless of their size or influence.

The first thing to fix would be enforcing stringent penalties for non-compliance – this is quite literally the bare minimum. Effective monitoring also means that we have a keen eye on production volumes and tax payments on goods like cigarettes and sugar. Fortunately, we have plenty of past failures to learn from, and by being a bit more proactive, we can establish a TTS that can safeguard our economy and our environment. But the system’s effectiveness hinges on the state’s ability to enforce it in a rigorous manner, and it will probably need to set an example by harshly penalising an MNC or two to send a strong statement that tax evasion and corruption is no longer tolerable.

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