The Federal Board of Revenue (FBR) has introduced a new regulation requiring electronic surveillance of production lines for certain goods in Pakistan. The move, part of the updated Sales Tax Rules of 2006, aims to ensure transparency and compliance at the production stage through advanced video monitoring systems.
Under this initiative, factories will be equipped with video surveillance systems and monitoring tools on their production lines. These systems, approved by the FBR, will feature video analytics and object detection technology, capturing real-time data on production activities. The footage and data will be transmitted to a central control unit at the FBR for continuous monitoring.
The surveillance system is designed to not only provide real-time footage but also store the data, track unexpected production halts, and generate quantitative analyses. This information will support legal actions when necessary, according to an official statement issued today.
Furthermore, manufacturers will not be allowed to move their goods off-site unless they meet the required production monitoring standards. Vendors will be responsible for installing and maintaining the monitoring equipment, with the manufacturers covering the associated costs.
However, no fees will be imposed on the FBR or its field offices for these services. An approval committee, either acting on its own or at a manufacturer’s request, will decide on the maximum fees vendors can charge. These fees will be made public for transparency.
Separately, the International Monetary Fund (IMF) has agreed to revise Pakistan’s fiscal and macroeconomic targets for the ongoing financial year. As part of this revision, the FBR’s tax collection target has been reduced by Rs620 billion, from Rs12.97 trillion to Rs12.35 trillion, while maintaining the tax-to-GDP ratio at 10.6 per cent.
This adjustment comes after the FBR recorded a revenue shortfall of Rs600 billion in the first eight months of the fiscal year. As a result, tax collection goals for the remaining months will be scaled down accordingly to address the deficit.
