ISLAMABAD: The Federal Board of Revenue (FBR) has directed all registered tyre manufacturers to install and operationalise electronic production monitoring systems by November 30, 2026, making it mandatory to track manufacturing activity and report production data directly to the tax authority.
According to Sales Tax General Order No. 32 of 2026, the requirement applies to all registered manufacturers of tyres covered under the Third Schedule to the Sales Tax Act, 1990.
The order, which takes immediate effect, requires manufacturers to install monitoring equipment and software at every curing press and takeaway conveyor or finishing line at their production facilities.
The system will automatically count completed tyres and distinguish actual production from maintenance, warm-up and other non-production cycles. It will also identify individual tyre categories based on diameter, width, tread pattern and weight.
Manufacturers will be required to transmit production information to the FBR’s central monitoring system in real time, allowing tax authorities to maintain records of output and verify production figures.
The monitoring mechanism must also detect and report equipment failures, unexpected stoppages, tampering, system bypasses and interruptions, while maintaining audit logs and production records for verification.
Under the new requirements, registered manufacturers cannot remove tyres from their business premises unless production has been monitored through the prescribed electronic system.
Manufacturers must provide the necessary information technology infrastructure, connectivity, electricity and access for installation and operation, besides paying the applicable fees and charges under the Sales Tax Rules, 2006.
The FBR has authorised ISSM Labelling Solutions (Private) Limited to provide electronic monitoring solutions for the tyre sector under an authorisation order dated October 30, 2026.
The company will be responsible for supplying systems that meet the prescribed technical requirements, including production counting, real-time reporting, data storage and monitoring of abnormal activities.
The order identifies nine registered tyre manufacturers for implementation, including Ghandhara Tyre and Rubber Company Limited, Service Long March Tyres Limited, Service Tyres (Private) Limited, Panther Tyres Limited, Diamond Tyres Limited, Service Industries Limited, Ghauri Tyre & Tube (Private) Limited, Crown Tyres Limited and United Rubber (Private) Limited.
Of these, six manufacturers fall under the Large Taxpayers Office Lahore, one under the Large Taxpayers Office Karachi, one under the Large Taxpayers Office Multan and one under the Regional Tax Office Peshawar.
However, the FBR clarified that the list is not exhaustive and that all other registered tyre manufacturers must also comply with the monitoring requirements.
Chief Commissioners Inland Revenue have been instructed to appoint dedicated focal persons to coordinate with manufacturers, the authorised vendor and the FBR to complete installations within the prescribed deadline.
Regional tax offices and other field formations have also been directed to identify manufacturers not included in the initial list, ensure their inclusion in the monitoring system and submit implementation progress reports to the FBR.
