ISLAMABAD: In a bid to curb tax evasion and ensure transparent production reporting, the Federal Board of Revenue (FBR) has barred sugar mills from clearing any stock from their premises without verification through digital or video-monitored systems.
According to Sales Tax General Order (STGO) No. 06 of 2025, titled “Electronic Monitoring of Production of Sugar Bags Through Video Analytics,” all sugar mills must install and operate approved Production Monitoring Equipment (PME) before the start of the upcoming crushing season.
The order, issued under Section 40C(2) of the Sales Tax Act, 1990, and Rule 150ZQT(2) of the Sales Tax Rules, 2006, makes continuous electronic surveillance of production mandatory. Mills that fail to comply will face enforcement action under the Sales Tax Act.
The FBR has specified technical standards for PME, requiring GPUs from NVIDIA, AMD, Intel, or Huawei and CPUs from AMD or Intel, all installed in dust-proof, lockable environmental control cabinets. These systems must integrate with existing monitoring infrastructure and enable real-time observation through video analytics or Digital Eye software.
Officials said the move aims to enhance transparency, prevent underreporting, and secure tax revenue from one of Pakistan’s largest industrial sectors.
