Techlogix Tackles Tax Evasion & Enhances Supply Chain Integrity with Real-Time Track and Trace System

Authentix is a global leader in authentication and tax recovery solutions, providing enhanced visibility and traceability to complex supply chains. They enable personalized solutions and rapid implementation which has allowed them to serve a global clientele beyond the US, including North America, Europe, Middle East, Asia, and Africa. They work with clients across diverse sectors, including governments, central banks, and brand owners to design and deliver innovative authentication solutions that preserve the integrity of global commerce. Following the same ideals, Authentix partnered with the Federal Board of Revenue (FBR) in Pakistan to implement a Track and Trace System (TTS). As the end-client, FBR is responsible for ensuring tax compliance and combating counterfeiting across various industries.

FBR was facing challenges in monitoring the production of sales and goods across four sectors: tobacco, sugar, cement, and fertilizer, while simultaneously ensuring tax compliance. They needed a comprehensive system enabling real-time monitoring of diverse types of goods and commodities that could be integrated into their existing infrastructure. Authentix engaged Techlogix as a development and implementation partner for the TTS. This electronic monitoring system seeks to enhance tax compliance, reduce counterfeiting, prevent smuggling, improve revenue collection, and maintain supply chain integrity for the end-client.

The Challenge: Lack of Supply Chain Visibility

Tax compliance required a degree of transparency at the supply chain level which the current system could not provide. The FBR needed a streamlined system to manage goods at every stage to prevent potential oversights and non-compliance. The existing infrastructure posed several key challenges:

• Inefficient Tracking & Data Collection: FBR could not monitor the production and sales of goods across different sectors or even brands. This also meant they didn’t have access to accurate taxation data.
• High Risk of Fraud: The lack of visibility in the supply chain translated to higher risks of smuggling illicit goods and tax fraud.
• Wasted UIMs: There was no way for FBR to manage and verify wasted unclaimed input tax credits (UIMs) reported by manufacturers.
• Lack of Data Analytics: Besides the absence of taxation data, FBR lacked adequate tools to analyze and visualize data.

Considering these issues, Authentix decided to engage Techlogix to deliver an efficient technological solution to optimize business processes for their end-client FBR.

Solution: Real-Time Metrics & Tracking

Authentix engaged Techlogix to develop a Track and Trace System (TTS) for FBR which leverages modern technologies like barcodes, unique identification marks (UIMs), and management information systems (MIS) for real-time tracking of production and sales. This was achieved by ensuring strict visibility at all stages of the supply chain as follows:

• Real-Time Monitoring of Goods: TTS enables real-time, nationwide electronic monitoring with unique identification marks (UIMs) assigned to goods, facilitating tracking throughout the supply chain.
• Production Monitoring: A production monitoring system (PMS) integrated with TTS allows tracking live production metrics at factory sites.
• Field Tracking: The new TTS lets FBR assign, track, and evaluate field inspector activities under the ‘Manage Field Inspectors Module’.

Workflow Optimization & Tax Compliance

Besides ensuring transparency in tracking, Techlogix also developed various modules to simplify workflow management for FBR. This successfully helped ascertain tax compliance across brands and industries while simultaneously improving efficiency, as such:

• Efficient UIM Management: Techlogix developed a ‘Manage Wasted UIMs Module’ that enables FBR to track and subsequently verify wasted UIMs reported by manufacturers.
• Counterfeit Prevention: All goods are labelled with tax stamps at the production stage, successfully avoiding tax evasion and fraud. The new ‘Stamp Order Management Module’ automates and streamlines the process of stamp ordering and subsequent fulfillment. The system also sends automatic notifications and updates for order status.
• Brand Management: A ‘Brand Registration Module’ was added which simplifies brand registration and management within the TTS system. Brands are sent automated notifications in case of acceptance or rejection.
• Data-Driven Insights: Integration with Power BI enables dynamic data visualization and real-time insights for decision making.

The Technology: Track and Trace System (TTS)

Techlogix assembled a cross-functional team of expert developers, software engineers, system architects, data analysts, and DevOps engineers to develop and seamlessly integrate the TTS into FBR’s existing infrastructure. The project had a strong technical foundation and utilized Angular 11 for dynamic web interfaces, .NET 5 for backend, Microsoft SQL Server and Influx DB for database management, and Microsoft Azure for cloud hosting and scalability. Following Agile methodology and Scrum framework ensured continuous delivery and deployment to facilitate the client. The TTS allowed secure data exchange, enabling seamless real-time monitoring and reporting. Additionally, integration with Power BI enabled advanced filters and drill-down capabilities for in-depth data analysis.

Key Benefits

Implementing the TTS was a major achievement for the FBR in terms of operational efficiency because it made their system completely transparent. This was good news for ensuring tax compliance but it was also a win for businesses. Reducing tax evasions meant shutting down the operations of illegally operating brands, thereby supporting legitimate businesses. The key benefits for FBR are outlined:

• Higher Transparency: The new TTS application improves transparency across FBR operations, thereby improving sector-level oversight, enhancing data collection, and ensuring fair competition. Better UIM management further strengthened trust in the system.
• Operational Efficiency: Easier brand registration, automated stamping, and better workflow management reduced manual errors, ensured timely deliveries, prevented unregistered brand operations, centralized control, and improved overall business efficiency. In fact, FBR reported 33% growth in sales tax collected from the sugar sector following the implementation of the TTS.
• Enhanced Tax Compliance: Enabling accurate data collection and complete visibility of the supply chain meant FBR could ensure tax completion with lesser margin of error. This was reflected in an 11% increased tax revenue for the sugar sector and overall reduced tax evasions.
• Illicit Trade Prevention: Automated stamp affixation and real-time tracking of all goods successfully reduced illegal smuggling of counterfeit goods, safeguarding both consumer rights and legitimate businesses. For example, Customs Intelligence seized smuggled cigarettes worth Rs. 303 Million and essential commodities worth Rs. 2.25 billion.
• Productivity Gains: Integration with Power BI facilitated better decision-making and allowed FBR to derive actionable insights from the data in real time.

Conclusion

Techlogix successfully built and implemented the Track and Trace System for Authentix, which has significantly enhanced the end client’s ability to ensure tax compliance, eliminate illicit trade, and boost operational efficiency. By streamlining workflows, increasing transparency, and enabling real-time data insights, FBR now has complete visibility of the entire supply chain. This initiative supports legitimate businesses by minimizing tax evasion and showcases how technology can transform business processes for enhanced compliance and integrity.