Latest news with #TrackandTraceSystem
Business Recorder
2 days ago
- Business
- Business Recorder
TTS roadmap: Ogra meets key oil industry players
ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) conducted an interactive session on Monday with key stakeholders from Pakistan's oil industry to review the progress and future roadmap of the nationwide Track and Trace System for the oil supply chain. The session, held via Zoom, is part of OGRA's broader digital transformation agenda to enhance transparency, safety, and efficiency across the oil sector. Chaired by Ogra Chairman Masroor Khan, along with Member Oil Zain ul Abideen and Member Finance Shakeel Ahmed, the session featured a detailed presentation on the system's operational framework, implementation strategy, and expected outcomes. Ogra launches second phase of digitising oil supply chain Director General Explosives, Director General Oil, Chairman of OCAC and over 100 representatives from the industry which include all refineries, prominent oil marketing companies (OMCs) such as PSO, PARCO, Wafi Energy, Gas & Oil Pakistan, Be Energy, Puma Energy, Zoom, Euro Oil, Fossil Energy and PGL participated in the session. The chairman Ogra emphasised the critical need for digitalisation to modernise the oil supply chain and curb inefficiencies, illegal practices, and safety hazards. He urged industry stakeholders to work collaboratively with Ogra to ensure the success of this national initiative. Speaking on the occasion, Member Oil Zain ul Abideen reiterated that the Track & Trace System will monitor the movement of petroleum products from refineries and import terminals to depots, tank lorries, and retail outlets. The system integrates ERP platforms, GPS tracking, and centralised dashboards to enable real-time monitoring and data-driven regulation. The Ogra officials in the presentation, highlighted that 29 OMCs have already deployed ERP systems, and approximately 15,000 tank lorries are equipped with GPS tracking. This digital backbone will support Ogra's upcoming full-scale enforcement efforts aimed at preventing illegal decantation, fuel smuggling, and other supply chain malpractices. The session reaffirmed Ogra's commitment to fostering a transparent and secure petroleum supply ecosystem in Pakistan. Copyright Business Recorder, 2025
Business Recorder
3 days ago
- Business
- Business Recorder
FC personnel deployed to monitor GLT units in KP
ISLAMABAD: Federal Board of Revenue (FBR) Member Inland Revenue (Operations) Dr Hamid Ateeq Sarwar has said that around 144 personnel of Frontier Constabulary force have been deployed in Khyber Pakhtunkhwa to regulate/ monitor Green Leaf Threshing units, to strengthen enforcement for checking massive evasion in tobacco sector. During the last meeting of the Public Accounts Committee, Dr Sarwar stated that two platoons of FC have been deployed at 13 GLT units for the purpose of enforcement. There are only around 13 GLTs in Pakistan, all fully traceable, making them the most logical taxation choke point. In contrast, there are over 450,000 retail outlets, selling cigarettes and more than 50 cigarette factories – primarily in Khyber Pakhtunkhwa (KPK) and Azad Jammu & Kashmir (AJK) – where enforcement at post-processing levels is far more challenging. FBR to strictly monitor tobacco movement The FED at GLTs, fully traceable processing units—is a key tax enforcement mechanism designed to curb revenue leakage and illicit cigarette manufacturing. By documenting actual volumes processed by manufacturers, the system ensures declared production aligns with tax liabilities, strengthening the national economy. Unprecedented excise increase in recent years on the legitimate cigarette manufacturing companies and too low advance FED in previous years has led to the illicit sector to grow to more than 56% of the market. This increase has been fuelled by smuggled cigarette brands. FBR needs to analyse how much tobacco was processed at GLTs and how much adjustable FED was collected from cigarette manufacturers and how much of this adjustable FED was actually adjusted against the final liability. FBR also needs to check how the GLT processing corresponds with the leaf buying of these manufacturers. Sources told Business Recorder that the country's tax potential from the cigarette sector exceeds Rs 600 billion annually. The two multinational companies that hold 44% of the market paid Rs 292 billion in taxes. Contrary to this, more than 40 local manufacturers controlling the remaining 56% of the market paid a meagre Rs 5 billion. Over Rs 300 billion in tax revenue, more than the federal allocations for education and health combined, has disappeared into the black market. FBR Chairman Rashid Mahmood Langrial recently admitted that over 90% of the cigarette sector operates outside the formal tax system. The Track and Trace System, introduced to enforce compliance, is failing. Only 19 of 413 registered brands are compliant. The government has proposed deploying Frontier Constabulary units in Khyber Pakhtunkhwa to regulate Green Leaf Threshing, signalling the extraordinary scale of the breakdown in civilian enforcement mechanisms. Copyright Business Recorder, 2025
Business Recorder
31-05-2025
- Business
- Business Recorder
Cigarette industry demands effective TTS enforcement
KARACHI: Cigarette industry has urged the federal government for the special measures in the budget for effective enforcement of digital monitoring tools like Track and Trace System (TTS) to collect the billions of rupees additional tax revenue. As per estimates, Pakistan's illicit cigarette market is draining over Rs415 billion annually from the national treasury, shifting an unfair tax burden onto compliant manufacturers, which are the leading tax payer sector in the country. While illegal manufacturers evade taxes and regulatory oversight, legal companies bear nearly all the tax load despite having less than half the market share. This creates a distorted market where legal businesses struggle to compete, and consumers unknowingly support illicit trade through inflated prices and limited product choices. Industry sources said that illicit trade severely disrupts market balance, forcing lawful manufacturers to shoulder disproportionate tax costs. This not only harms the industry's growth but ultimately affects consumers who pay higher prices for taxed products, they added. 'Effective enforcement of digital monitoring tools like Track and Trace is essential to restore fairness and protect government revenues,' they said. Experts warned that if preventive measures are not taken in the upcoming budget, illicit trade will continue to erode government resources needed for public services, hinder economic development, and encourage illegal business practices that undermine the rule of law in Pakistan. Industry experts emphasise that cracking down on illicit trade through enhanced regulatory frameworks can reclaim billions in lost revenue and ensure a level playing field for all stakeholders. They said that the government can earn billions of rupees revenue by fully implementing the track and trace system in the industry. Several commitments have been made in the past to address this issue; however, enforcement actions on the ground have not been taken to curtail the scale of the illicit trade. In absence of the full implementation of the Track and Trace system, illicit operators are growing freely and depriving the national exchequer of much-needed billions of rupees revenue. Copyright Business Recorder, 2025
Express Tribune
23-05-2025
- Express Tribune
'55% of local cigarette producers evade taxes'
Listen to article The Institute for Public Opinion and Research (IPOR) released its research report today during a press briefing in Lahore. The report sheds light on the alarming rise in the illicit cigarette trade across Pakistan and the gaps in enforcing existing tobacco control laws. During the briefing, IPOR Executive Director, Tariq Junaid revealed that more than 54% of cigarette brands available in the market are in blatant violation of national laws, particularly the Track and Trace System (TTS) and Graphical Health Warnings (GHWs). He highlighted that despite the implementation of GHWs in 2009 and TTS in 2022, enforcement has been practically non-existent, creating space for the illegal trade to thrive. Cigarette packs without health warnings and without TTS stamps are openly being sold in the market. He pointed out that although legislation introduced in 2019 mandated that 60% of each cigarette pack must display a graphical health warning, six years later, 286 brands are still openly sold without any health warnings. This, he noted, is a clear breach of the law. Junaid added that, much like in other areas, the Track and Trace System appears to have failed in curbing these violations. According to the report, a survey was conducted across 1,520 retail outlets in 19 districts, identifying 413 different cigarette brands being sold. Alarmingly, only 19 brands were found to be compliant with TTS requirements while 394 brands were found without stamps. The vast majority lacked tax stamps and the legally mandated health warnings. Moreover, 332 brands were being sold below the legal minimum price of Rs162.25, with some priced as low as Rs40 — posing not just a regulatory challenge but also causing significant loss to government revenue. The report further disclosed that 55% of illicit cigarettes are produced locally without paying taxes, while 45% are smuggled from abroad. This unchecked illegal trade is causing an estimated annual loss of over Rs300 billion to the national treasury. During the session, Junaid also responded to questions related to tobacco sector regulations. He stressed that each time the government increases tobacco taxes, illegal cigarette sellers are the primary beneficiaries, as the lack of enforcement drives consumers toward cheaper, illicit tax-evading alternatives. He urged the government to take immediate and decisive action by enhancing monitoring of retail outlets nationwide, ensuring full compliance with TTS and GHWs by all manufacturers, and launching a coordinated national crackdown on the illegal cigarette trade. These actions, he stated, are critical not just for ensuring legal accountability but also for safeguarding state revenue and maintaining fair business competition. Junaid warned that this is not merely a regulatory shortfall, but a serious economic and legal crisis that demands urgent, integrated, and effective government intervention.
Business Recorder
17-05-2025
- Business
- Business Recorder
Public opinion surveys: A crucial tool for evidence-based policymaking
In an era where governance and policymaking are increasingly scrutinized, it is imperative that decisions are rooted in empirical evidence rather than assumptions or political expediency. Public opinion surveys serve as a critical tool in this regard, providing policymakers with real-time insights into public needs, concerns, and expectations. By leveraging scientifically conducted surveys, governments and institutions can align their policies with public sentiment, ensuring greater effectiveness and accountability. The power of polling in policy decisions Public opinion surveys are more than just snapshots of popular sentiment—they are powerful instruments that guide governance, assess policy effectiveness, and enhance public trust in decision-making processes. By systematically collecting and analyzing data, surveys can highlight pressing societal issues, identify policy gaps, and propose strategic interventions that resonate with the people. For instance, surveys conducted by the Institute for Public Opinion Research (IPOR) have repeatedly pointed out governance inefficiencies, yet meaningful reforms remain elusive. If Pakistan is to move towards effective governance, data-driven decision-making must become the cornerstone of public policy. The tobacco industry is a prime example of how weak enforcement of data-backed policies can lead to massive revenue losses. According to the latest research by IPOR, compliance with the Track and Trace System (TTS) remains alarmingly low. Out of 413 cigarette brands available in the market, only 19fully adhere to the system, leaving 54% of brands non-compliant. A significant portion of the non-compliant tobacco market consists of local duty-evaded brands, accounting for 55%, while smuggled brands make up the remaining 45%, further deepening the issue of tax evasion. Additionally, 13 brands are being sold both with and without TTS, highlighting serious lapses in regulatory oversight. Similarly, our study on the shifting dynamics between social media and traditional media consumption provided invaluable insights into how Pakistanis engage with news and political discourse. The findings demonstrated that younger demographics increasingly rely on digital platforms for information, whereas older generations still place their trust in television and print media. The study also revealed that while 41% of Pakistanis rely on social media for news, a significant 38% still depend on traditional media, highlighting the need for a balanced communication approach. Policies on misinformation, media regulation, and public engagement should stem from such empirical findings rather than outdated assumptions about media consumption. Most recently, IPOR's opinion poll on the one-year performance of Chief Minister of Punjab assessed governance efficiency and service delivery across all four provinces. The survey provided key insights into public sentiment, showing that public trust improves when governance delivers visible progress, with education (73%) and health (68%)receiving high approval ratings. However, it also identified employment (63%) as a major area of concern, emphasizing the urgent need for job creation policies. These findings underscore how data-driven policymaking enables leaders to address real public concerns, ensuring that resources are allocated effectively and reforms are tailored to actual needs. From opinion to action Public opinion surveys must not be seen as mere academic exercises or political tools; rather, they should be an integral component of the policymaking process. Evidence-based decision-making leads to more robust governance structures, greater public satisfaction, and long-term stability. Governments at all levels should institutionalize survey research as a standard practice for evaluating policies, measuring impact, and responding to public needs dynamically. Policymakers must embrace a culture where decisions are backed by data, not dictated by anecdotal evidence or political considerations. If governance is to be truly representative and effective, it must start with listening to the people and there is no better way to do that than through rigorous, scientific public opinion surveys. The way forward As Pakistan navigates complex economic and social challenges, adopting an evidence-based approach to governance is not just an option – it is a necessity. Public opinion surveys provide a direct channel for citizens to voice their concerns and expectations. By integrating these insights into the policy process, governments can craft responsive, effective, and sustainable policies that truly serve the public interest. In the end, good governance is about making informed decisions and informed decisions require data. The future of policymaking lies in embracing the power of public opinion research and ensuring that every policy is backed by credible evidence. It's time we recognize that the best policies are not those crafted in isolation but those shaped by the voices of the people they are meant to serve. The article does not necessarily reflect the opinion of Business Recorder or its owners
