The Federal Board of Revenue has launched a new electronic monitoring system for bottled water manufacturers in an effort to curb sales tax evasion and improve compliance across the sector.
In this regard, the FBR issued Sales Tax General Order (STGO) No. 3 of 2026, making electronic production monitoring mandatory for bottled water manufacturing facilities nationwide.
The initiative has been introduced under Section 40C(2) of the Sales Tax Act, 1990, along with Rules 150ZQR and 150ZQT of Chapter XIV-BA of the Sales Tax Rules, 2006.
According to the order, all registered businesses involved in the production and packaging of bottled water, including toll manufacturers, must install the electronic production monitoring system immediately.
The FBR has directed manufacturers to complete installation of the required system by June 15, 2026.
Under the new framework, companies will be required to install industrial barcode scanners, counting sensors, industrial computers, IP cameras, network video recorders, programmable logic controllers, LED display systems, and uninterrupted power supply units.
The monitoring system will also include specialized software designed to track production activities in real time and transmit data directly to the FBR’s central monitoring unit.
Officials said the system will support real-time object detection and counting, production analysis, data storage, identification of unexpected production shutdowns, and advanced analytics for enforcement purposes.
The FBR added that only board-authorized vendors will be allowed to supply, install, and maintain the monitoring systems.
To ensure smooth implementation, Chief Commissioners Inland Revenue have been instructed to appoint dedicated focal persons to coordinate with bottled water manufacturers and approved vendors.
Tax experts said the latest move is part of the FBR’s broader strategy to digitize industrial monitoring and reduce underreporting in sectors considered vulnerable to tax leakage.
They noted that similar electronic monitoring systems have already been implemented in industries such as sugar, tobacco, fertilizer, and cement to improve transparency and boost revenue collection.
The initiative also reflects the government’s continued push toward documentation of the economy and technology-based tax administration reforms.
