FBR Mandates Electronic Monitoring for Pakistan’s Tea Industry by December

ISLAMABAD: The Federal Board of Revenue (FBR) has mandated that all registered entities involved in tea manufacturing, blending, and packing must install electronic production monitoring systems by December 10. This directive requires manufacturers to record every retail pack produced before it leaves the factory premises.

The new regulations will also extend to toll and contract packers, encompassing various tea products including black tea, green tea, flavored tea, tea bags, instant tea, and tea extracts. All retail packaging formats, such as sachets, pouches, cartons, jars, tins, and bulk packs, are included in this order.

This initiative is part of the FBR’s broader strategy to address a staggering over Rs3 trillion gap in sales tax collection. By enforcing electronic monitoring in multiple sectors, the FBR aims to enhance compliance and transparency in the tea industry.

Manufacturers are required to equip each packing line with barcode scanners, counting sensors, and other monitoring devices to electronically record production data and transmit it to the FBR in real-time, as outlined in the Sales Tax General Order (STGO) No. 35 of 2026. The FBR has already identified 14 registered manufacturers and packers, including prominent names like Tapal Tea and Mezan Tea, to ensure adherence to these new standards.