ISLAMABAD: The Federal Board of Revenue (FBR) has uncovered massive sales tax evasion, amounting to Rs30 billion annually, in the tile manufacturing sector, prompting authorities to introduce strict monitoring measures, including the installation of cameras at production units.
According to FBR, monitoring cameras will now be installed across 17 key production sectors to block sales tax leakages.
The revenue authority expects an additional Rs76 billion from the sugar sector and Rs102 billion from the cement sector following the implementation of monitoring mechanisms.
FBR Chairman Rashid Langrial, during a briefing to the Senate Finance Committee chaired by Senator Saleem Mandviwalla, stated that tile manufacturers had been resisting the installation of surveillance cameras. He warned that companies refusing to comply should shut down their operations.
He informed the committee that instead of the earlier plan of 16 cameras, only four monitoring cameras will now be installed in each tile manufacturing facility—covering kilns, packaging areas, and all entry and exit points.
Langrial added that every tile produced will be monitored, citing that manufacturers have been providing inaccurate production data, leading to severe revenue losses. He said tile companies routinely underdeclare production, which contributes to monthly revenue shortfalls faced by the FBR.
The chairman clarified that no additional taxation measures have yet been finalized to cover January’s anticipated revenue shortfall. He said that camera monitoring has already begun in sugar mills and will soon be extended to all major industrial sectors.
Highlighting vested interests, Langrial noted that several government ministers own sugar mills, but Prime Minister has issued clear directives for uniform monitoring across all units. FBR aims to ensure transparency in production reporting by installing cameras in every major manufacturing sector.
