FBR orders packaged milk manufacturers to install real-time electronic production monitoring systems by June 30, 2026
The Federal Board of Revenue (FBR) has moved to implement electronic monitoring of packaged milk production in an effort to curb sales tax leakages and strengthen tax compliance in the dairy sector.
The tax authority issued Sales Tax General Order (STGO) No. 6/2026 directing all registered persons involved in the production and packaging of milk, including toll manufacturers, to immediately install an electronic production monitoring system.
Under the order, manufacturers have been instructed to complete installation of the monitoring infrastructure by June 30, 2026.
The production monitoring framework will include a range of hardware and software components designed to capture and transmit real-time production data to the FBR’s central control system.
According to the order, the required hardware includes industrial barcode scanners, counting sensors, industrial computers, IP cameras, network video recorders, programmable logic controllers (PLCs), human-machine interfaces (HMIs), LED displays, uninterrupted power supply systems and specialised electrical cabinets.
The system will also incorporate production monitoring and information software capable of recording and analysing manufacturing activity on a real-time basis.
The FBR said the systems must be supplied, installed and maintained by vendors authorised by the board.
To ensure implementation, chief commissioners of Inland Revenue have been directed to appoint dedicated focal persons to coordinate with packaged milk manufacturers and authorised vendors.
Under Rule 150ZQT of the Sales Tax Rules, 2006, the monitoring system must support real-time capture of production processes, object detection and counting, live transmission of production data to the FBR, storage and archiving of information, detection of unexpected shutdowns, quantitative production analysis and data analytics for legal enforcement actions.
Tax officials said the initiative is part of broader efforts to digitise tax administration, improve transparency and reduce revenue leakages in key manufacturing sectors.
