ISLAMABAD: The Federal Board of Revenue (FBR) is assessing the possibility of introducing a video analytics–based production monitoring system as a supplementary measure alongside its existing Track and Trace System (TTS).
The initiative aims to diversify monitoring technologies, though the Track and Trace System has already proven effective in enhancing tax transparency, reducing evasion, and improving compliance across key industries.
The Track and Trace System enables real-time monitoring of products through secure, machine-readable fiscal stamps with cryptographic features that verify authenticity from production to retail. Officials said the system has significantly curbed under-reporting, illicit trade, and counterfeiting.
In contrast, the proposed video analytics mechanism uses cameras and artificial intelligence to count products on production lines. While it can provide operational insights, officials said it cannot authenticate products or monitor supply chains beyond factory premises, limiting its effectiveness for regulatory enforcement.
They noted that without visible fiscal markings, consumers cannot distinguish between tax-paid and informal-sector products, reducing deterrence and compliance visibility.
Official data shows that after TTS deployment in the sugar sector, tax revenue rose by 33 percent in FY2021–22, with reported production up 34 percent to 7.51 million tons. In the tobacco sector, revenue collection climbed from Rs61.79 billion in FY2022 to Rs83.5 billion in FY2023, a 26 percent increase following TTS implementation.
FBR is expected to retain the Track and Trace System in existing sectors while expanding it to new industries, using video analytics as a supplementary monitoring tool within its broader digitization framework.
