LAHORE: A dispute between the All Pakistan Textile Mills Association (APTMA) and the Federal Board of Revenue (FBR) has intensified over the installation of surveillance cameras in textile mills, a measure proposed by the tax authority to curb tax evasion.
The FBR has asked textile mill owners to install video monitoring systems in spinning units at their own expense. However, textile manufacturers have strongly opposed the move and refused to bear the cost of the cameras.
According to industry sources, mill owners have warned that factories could be shut down if cameras are installed forcibly. They argue that they cannot bear the additional financial burden, which they say would run into millions of rupees.
The FBR maintains that the monitoring system is necessary to prevent tax evasion and improve documentation within the textile sector. Officials say the total annual consumption of cotton bales by textile units is around 13 million. Of these, 5 to 6 million bales are produced locally, while the remainder are imported.
According to the FBR, nearly 9 million bales are already within the tax net, while a significant quantity of locally produced cotton is reportedly consumed without payment of sales tax. The proposed camera system is aimed at tracking the movement and consumption of cotton bales and bringing unreported transactions into the tax net.
APTMA sources argue that if the FBR wants to install cameras for its own monitoring purposes, it should bear its costs. They also contend that the initiative should not be limited to textile mills alone and should be extended to ginning and spinning units as well.
FBR decides to install monitoring cameras at textile mills
Industry representatives point out that only around 180 textile mills remain operational in the country, whereas there are more than 1,200 ginning and spinning units. They claim that expanding monitoring efforts to these sectors could help generate greater tax revenues.
The standoff between the tax authority and textile manufacturers continues, with both sides holding firm to their positions.
