Islamabad: The Federal Board of Revenue (FBR) has launched a new digital monitoring mechanism to track tiles production across Pakistan through advanced video analytics technology, in a move aimed at improving tax compliance, transparency, and production reporting in the manufacturing sector.
The initiative has been introduced through Sales Tax General Order (STGO) No. 02/2026, issued under Section 40C(2) of the Sales Tax Act, 1990, read with the relevant provisions of the Sales Tax Rules, 2006.
Under the new directive, all registered tile manufacturers have been directed to install video analytics-based monitoring systems at their production facilities without delay. The FBR said the new system will enable authorities to monitor industrial production through real-time surveillance, automated object detection, and digital production analysis, ensuring greater oversight of actual manufacturing output.
According to the order, the monitoring systems must be installed using equipment and solutions supplied by FBR-authorized vendors, and all tile manufacturing units have been instructed to complete installation of the required hardware and software by April 30, 2026.
The FBR stated that the monitoring solution will be capable of real-time capture of production processes, automated production counting, and continuous transmission of production data to the FBR Central Control Unit. The system will also be designed to detect production halts, irregularities, and unusual activity, allowing tax authorities to conduct more effective compliance checks and enforcement actions.
In addition, the video analytics framework will support quantitative production analysis and advanced digital reporting for legal, audit, and enforcement purposes, helping the tax authority minimize underreporting and revenue leakage in the tiles manufacturing industry.
The FBR has designated ISSM Labelling Solutions as the authorized vendor responsible for supplying, installing, and maintaining the required monitoring systems for the tile sector. The vendor has been tasked with ensuring that the systems meet the prescribed technical and operational standards laid down by the tax authority.
To ensure smooth implementation of the initiative, the FBR has also directed Chief Commissioners Inland Revenue in relevant jurisdictions to appoint focal persons for coordination with tile manufacturers and the authorized vendor. These officials will oversee the installation process and ensure the monitoring systems become operational within the stipulated timeline.
A jurisdiction-wise list of registered tile manufacturers has also been circulated by the FBR to facilitate compliance monitoring and administrative coordination.
The move is part of the FBR’s broader strategy to digitize tax administration and strengthen monitoring of production-intensive industries through technology-driven solutions. By using video analytics and real-time production tracking, the tax authority aims to create a more transparent and data-backed mechanism for assessing actual output and ensuring accurate tax reporting.
The latest step signals the FBR’s continued push toward automation, digital enforcement, and sector-specific compliance monitoring, particularly in industries where underreporting of production has historically contributed to significant tax losses.
