FBR expands electronic production monitoring

According to Dawn, the Federal Board of Revenue has widened electronic production monitoring to cover leather and paper and paperboard manufacturers. The step was set out in SRO 1751 of 2026 issued on Wednesday, which brings registered producers in both industries under the monitoring provisions of the sales tax rules. The aim is to obtain output figures directly from factories instead of depending only on numbers that registered manufacturers declare.

Four private vendors have been approved to handle installation, operation and upkeep of the camera systems in five industries, including packaged tea, household electronics and edible oil. Production lines will be fitted with IP cameras and NVRs, with cameras filming activity continuously and recorders keeping footage for at least two months. Vendors may not charge manufacturers for other equipment or software, and all footage stays the FBR's property, confidential and shared only as the Board directs.

Separately, the FBR has launched an online facility that lets steel melters and re-rollers declare electricity consumption when distributors miss supply reports or file late returns. The tool addresses a problem taxpayers faced, as electricity figures needed for the Annex K form were not picked up automatically. Annex K of the return is required from steel melters, re-rollers and composite units when computing their liability.