ISLAMABAD: The Federal Board of Revenue (FBR) has identified nearly Rs30 billion in annual Sales Tax evasion in Pakistan’s tile industry and is now moving to install a camera-based production monitoring system across the sector. FBR Chairman Rashid Langrial said the decision is part of a broader crackdown on tax manipulation across 17 industrial sectors, following successful monitoring interventions in the sugar and cement industries.
He cautioned that tile manufacturers resisting installation of monitoring cameras may face operational shutdowns, as the FBR can no longer rely on self-declared production figures. To simplify compliance, the number of required cameras has been reduced from 16 to four strategically placed units covering kilns, packaging areas, and all entry and exit points.
The monitoring drive was first launched in sugar mills on the prime minister’s instructions and will gradually extend to all major industrial segments. The initiative comes as Pakistan posted a 32% rise in Sales Tax collection for FY 2024–25, reaching PKR 1,619.5 billion. Key contributors included electricity, petroleum, sugar, cement, and cotton yarn.
The automotive sector recorded exceptional growth, with a 159% surge in vehicle-related Sales Tax and a 136% increase from motorcycles. Import-stage Sales Tax also rose by 22.4% to PKR 2,281.9 billion, reflecting stronger compliance and improved economic activity.
Chairman Langrial said the camera-based monitoring system is essential for safeguarding revenue and ensuring transparency in sectors vulnerable to chronic tax evasion.
