ISLAMABAD: The Federal Board of Revenue (FBR) has introduced stricter monitoring requirements for Pakistan’s packaged tea industry, requiring registered businesses involved in tea manufacturing, blending and packing to install electronic production monitoring systems across all packing lines.
The FBR issued Sales Tax General Order (STGO) No. 35 of 2026 under Section 40C of the Sales Tax Act, 1990. The order covers tea manufacturers, blending unmits, regular packers, toll manufacturers and contract packers.
All affected businesses must install and make the prescribed monitoring systems fully operational by December 10, 2026.
The new monitoring regime applies to black tea, green tea, flavoured tea, tea bags, instant tea, tea extracts, concentrates and tea-based preparations. It also covers instant tea premixes containing ingredients such as milk powder and sugar, regardless of retail packaging size or format.
Under the new requirements, tea manufacturers and packers must install barcode scanners, counting sensors and other prescribed hardware and software on every packing line.
The system will operate after retail packs have been filled and sealed. Industrial barcode scanners will identify each product’s Stock Keeping Unit (SKU), while automated sensors will count the number of packages produced.
Production information will be recorded separately for each SKU and transmitted electronically to the FBR through systems provided by authorised vendors.
Businesses that currently sell products without barcodes, or use barcodes that are not unique to individual SKUs, must introduce compliant barcodes within 15 days of the order’s issuance.
Each distinct brand, tea blend, net weight and packaging type must carry a separate barcode.
Manufacturers must also register complete product information with an authorised vendor, including the brand name, blend, net weight, packaging type, retail price, barcode number and product photographs.
Any new product or change to an existing SKU must be registered at least seven days before the relevant packing activity begins.
Businesses using manual packing facilities will also have to establish conveyor systems or designated scanning points to ensure that every retail package is counted before it leaves the production area or is dispatched.
FBR Authorises Four Companies for Monitoring Systems
The FBR has authorised four companies to provide electronic production monitoring solutions to the packaged tea industry:
Excellence Delivered (ExD) (Pvt) Ltd
National Radio and Telecommunication Corporation (NRTC)
Tollink Pakistan (Pvt) Ltd
AJCL (Pvt) Ltd
The monitoring solutions must provide real-time production tracking, barcode identification, automated package counting, electronic data transmission, video monitoring, audit logs and production reports.
The systems must also identify and report unusual activities, including unexpected production stoppages, barcode mismatches, equipment failures, tampering and attempts to bypass the monitoring mechanism.
The FBR has further directed that registered tea manufacturers and packers cannot remove packaged tea from their business premises unless its production has been monitored in accordance with Chapter XIV-BA of the Sales Tax Rules, 2006.
To comply with the requirements, businesses must provide the necessary infrastructure, electricity, internet connectivity and system access. They will also be responsible for paying the applicable monitoring fees and other related charges.
The FBR has instructed Chief Commissioners Inland Revenue to nominate dedicated focal persons to coordinate with tea manufacturers and authorised service providers.
These officials will facilitate implementation, monitor compliance and ensure that all eligible businesses are brought under the electronic monitoring system.
The order has taken immediate effect and applies to all registered packaged tea manufacturers and packers, including businesses that may not have been included in the FBR’s attached jurisdiction-wise list.
The new requirements are aimed at improving production visibility, strengthening sales tax monitoring and preventing unrecorded production and tax evasion in the packaged tea sector.
