The Federal Board of Revenue (FBR) in Pakistan has expanded its electronic production monitoring program to include leather and paper and paperboard sectors by authorizing four private vendors to install camera-based systems. This initiative aims to enhance sales tax compliance and reduce tax evasion by directly observing manufacturing processes. The FBR issued SRO 1751 of 2026 on Wednesday, detailing the installation and operation requirements for these new monitoring systems, which include IP cameras and Network Video Recorders (NVRs) to capture real-time production data for at least two months.
Written locally by qwen2.5:14b on 2026-10-08,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
The Federal Board of Revenue (FBR) in Pakistan has expanded its electronic production monitoring system to cover the leather, paper, and paperboard manufacturing sectors. The move aims to strengthen sales tax monitoring and reduce tax evasion by directly observing production activity rather than relying on self-reported figures from manufacturers. On Wednesday, the FBR issued SRO 1751 of 2026 to notify that these industries would be electronically monitored under Chapter XIV BA of the Sales Tax Rules 2006. Additionally, four private vendors were authorized to supply, install, operate, and maintain production-monitoring equipment in five sectors. This expansion builds on existing efforts to ensure more accurate tax collection and compliance across various industrial sectors.
Written for “Electronic Monitoring Expansion” on 2026-10-08,
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The Federal Board of Revenue (FBR) has extended electronic production monitoring to the leather, paper and paperboard sectors, authorising four private vendors to install and operate camera-based monitoring systems across industrial sectors.
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vendors → extend → sectors
The move is part of the FBR’s efforts to strengthen sales tax monitoring and curb tax evasion by obtaining production data directly from manufacturing units rather than relying solely on figures declared by registered manufacturers.
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move → strengthen → manufacturers
The monitoring system is already operating in several industries.
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system → operate → industries
The expansion brought additional manufacturing sectors into a system through which the tax authority can directly observe production activity and maintain records of factory operations, reducing its dependence on production figures declared by registered manufacturers.
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authority → bring → manufacturers
The FBR issued SRO 1751 of 2026 on Wednesday to notify that production by registered manufacturers of leather and paper and paperboard would be electronically monitored under Chapter XIV BA of the Sales Tax Rules 2006.
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production → issue → Rules
In a separate authorisation, the FBR approved four vendors to supply, install, operate and maintain production-monitoring equipment across five sectors — packaged tea, household electronics, paper and paperboard, edible oil and ghee, and leather.
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vendors → approve → sectors
Obsidian Technologies will monitor textile spinning, while Tollink Pakistan covers aerated beverages and bottled water.
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Pakistan → monitor → beverages
ISSM Labelling Solutions monitors textile spinning, tiles, packaged milk, packaged juices and bottled water, while Authentik covers aerated beverages, packaged milk, packaged juices and bottled water.
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Authentik → monitor → beverages
Under the new arrangement, IP cameras and Network Video Recorders (NVRs) will be installed at production lines.
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cameras → instal → lines
The cameras will continuously capture production activity in real time, while the NVRs will retain recordings for at least two months.
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NVRs → capture → months
The vendors will be responsible for procuring, installing, operating, maintaining and repairing the equipment.
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vendors → procure → equipment
The authorisation is limited to IP cameras and NVRs, barring vendors from supplying or charging manufacturers for any other equipment or software.
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authorisation → limit → equipment
All footage and recordings will remain the property of the FBR and will be treated as confidential, with sharing prohibited except as directed by the Board.
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sharing → remain → Board
The FBR has introduced an online facility allowing steel melters and re-rollers to declare electricity consumption to calculate their sales tax liability when power distribution companies fail to report supplies or submit returns late.
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companies → introduce → returns
Annex K of the sales tax return is mandatory for steel melters, re-rollers, and composite units to calculate sales tax liability under the Thirteenth Schedule of the Sales Tax Act 1990.
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melters → calculate → Act
The automated system normally obtains electricity consumption data after distribution companies file Annex C of their returns.
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companies → obtain → returns
However, the FBR said taxpayers were facing difficulties when distribution companies either did not declare electricity supplied to them or filed their returns late, preventing the required consumption data from being automatically reflected in Annex K.
Published in Dawn, October 8th, 2026
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companies → say → Dawn
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