ISLAMABAD: The Federal Board of Revenue (FBR) has introduced a new digital monitoring system to track tile production across the country using advanced video analytics technology.
The move aims to enhance transparency, improve tax compliance, and curb underreporting in the manufacturing sector.
According to an official notification issued as Sales Tax General Order (STGO) No. 02/2026, the initiative has been launched under Section 40C(2) of the Sales Tax Act, 1990, along with relevant provisions of the Sales Tax Rules, 2006.
Mandatory Video Analytics for Tile Manufacturers
Under the new directive, all registered tile manufacturers are required to install video analytics-based monitoring systems at their production facilities without delay.
These systems will enable the FBR to monitor production processes through real-time surveillance and automated data analysis, ensuring greater oversight of manufacturing output.
The directive also mandates that such systems must be installed using equipment provided by FBR-authorized vendors.
Deadline Set for April 30, 2026
FBR has instructed all tile manufacturing units to complete the installation of video analytics solutions, including both hardware and software, by April 30, 2026.
The order further directs relevant tax authorities to ensure compliance and coordinate with manufacturers for smooth implementation.
Authorized Vendor for Monitoring System
The FBR has identified ISSM Labelling Solutions as an authorized vendor responsible for supplying and maintaining the video analytics systems.
The systems must comply with strict technical requirements, including:
• Real-time capture of production processes
• Automated object detection and production counting
• Continuous data transmission to the FBR Central Control Unit
• Detection of production halts or irregularities
• Quantitative production analysis
• Advanced data analytics for legal and enforcement purposes
Nationwide Coordination Mechanism
To facilitate implementation, Chief Commissioners Inland Revenue across jurisdictions have been directed to appoint focal persons.
These officials will coordinate with tile manufacturers and authorized vendors to ensure timely installation and operational functionality of the monitoring systems.
A jurisdiction-wise list of registered tile manufacturers has also been shared by the FBR for reference and compliance tracking.
Strengthening Tax Compliance Through Technology
The initiative reflects FBR’s broader strategy to digitize tax monitoring and reduce revenue leakage in key industrial sectors.
By leveraging video analytics, the FBR aims to create a transparent system that provides real-time insights into production levels, helping ensure accurate reporting and fair taxation.
The order has been issued with the approval of the Member Inland Revenue (Operations), FBR, and takes effect immediately.
