ISLAMABAD — The Federal Board of Revenue (FBR) has directed all tobacco manufacturing units across the country to install internet protocol (IP)-based CCTV cameras at designated locations within their production facilities to ensure real-time electronic monitoring of tobacco output.
The directive has been issued under the powers conferred by Section 40C of the Sales Tax Act, 1990, read with Chapter XIV-B and BA of the Sales Tax Rules, 2006, as part of FBR’s broader initiative to strengthen transparency and curb tax evasion in the tobacco industry.
According to Sales Tax General Order (STGO) No. 7 of 2025, the FBR reminded manufacturers that prior communications had already been issued in August 2025, instructing them to set up cameras for continuous oversight of production processes. These letters—F.No. 2(3)/T&Ts/Tobacco/2021/103449-R, F.No. 2(3)/T&Ts/Tobacco/2021/104849-R, and F.No. 2(3)/T&Ts/Tobacco/2021/105188-R—outlined the mandatory installation of surveillance systems.
The latest order reinforces compliance, requiring all tobacco factories to install IP-CCTV cameras under FBR’s supervision. The cameras will cover critical manufacturing points to provide uninterrupted video feeds for monitoring purposes.
The Board further stated that no person engaged in the production of tobacco products will be allowed to remove or transport any manufactured goods from their premises until the electronic monitoring system is fully operational and verified by the authorities.
“This step will help ensure transparency, prevent tax evasion, and maintain strict oversight on the actual output of the tobacco sector,” an FBR official said, adding that the measure is part of a larger digital enforcement drive to enhance tax compliance through technology.
