ISLAMABAD: The Federal Board of Revenue (FBR) has expanded its digital tax monitoring system to production lines of packaged milk, iron and steel, edible oil and ghee manufacturers with immediate effect.
The tax authority issued SRO 880(I)/2026 on Wednesday, directing electronic monitoring of production activities under Rule 150ZQR of Chapter XIV-BA of the Sales Tax Rules, 2006.
According to the notification, registered manufacturers engaged in the production of packaged milk, iron and steel products, oil and ghee will now be subject to real-time digital monitoring through video surveillance and analytics systems.
The FBR said the monitoring mechanism would use video surveillance, video analytics solutions and “digital eye” technology to electronically monitor production processes on a real-time basis.
Under Rule 150ZQR, the system applies to goods listed in the Third Schedule of the Sales Tax Act, 1990, as well as any additional products specifically notified by the board.
The rule further allows the FBR to determine the implementation date for monitoring specified goods through separate notifications.
Officials said the move is part of broader efforts to strengthen tax compliance, improve transparency in industrial production, and curb underreporting and tax evasion in key manufacturing sectors.
The FBR has increasingly adopted technology-based enforcement measures in recent years, including digital invoicing, track-and-trace systems, and real-time monitoring of production facilities.
Industry experts said the latest expansion could improve revenue collection from high-volume sectors but may also raise compliance and operational costs for manufacturers.
Pakistan’s tax authorities are under pressure to improve revenue generation as the country seeks to meet fiscal targets under its economic reform programme.
