FBR Expands Electronic Monitoring to Leather and Paper Industries

ISLAMABAD: The Federal Board of Revenue (FBR) has announced the expansion of its electronic production monitoring system to include the leather, paper, and paperboard sectors, enhancing its efforts to combat tax evasion. This initiative allows the FBR to directly obtain production data from manufacturing units, rather than relying solely on figures reported by registered manufacturers.

The FBR’s decision, formalized through SRO 1751 of 2026, was made public on Wednesday. It authorizes four private vendors to install and operate camera-based monitoring systems across these industrial sectors. This move is part of a broader strategy to strengthen sales tax oversight and ensure compliance within the manufacturing landscape.

By implementing this monitoring system, the FBR aims to maintain accurate records of factory operations and reduce its dependency on potentially inflated production figures. This initiative is expected to enhance transparency and accountability in the manufacturing process, ultimately benefiting the economy by ensuring fair tax contributions.

Looking ahead, the FBR will continue to monitor the effectiveness of this system and may consider further expansions to additional sectors. Stakeholders in the leather and paper industries are encouraged to cooperate with the new regulations to facilitate a smoother transition and compliance.