The Federal Board of Revenue (FBR) has announced a new tax credit facility for textile spinning units to offset expenses incurred on the installation of video analytics systems, aimed at reducing costs for the sector while ensuring electronic monitoring of production.
Under this initiative, a joint committee comprising members from the FBR and the All Pakistan Textile Mills Association (APTMA) has been formed to oversee the implementation of video monitoring systems in spinning units. The committee will strategize the rollout, address operational challenges, and design the tax credit mechanism. From the FBR, members include Dr. Najeeb Ullah, Chief of the Transformation Delivery Unit, and Javed Iqbal, Director of Track & Trace. APTMA representatives include Chairman Kamran Arshad, Senior Member Rehman Naseem, and General Secretary Shaid Sattar as co-opted member. The committee is expected to submit its report by Friday, December 19, 2025.
Initially, the FBR mandated video analytics monitoring for registered textile spinning units starting November 1, 2025. However, the deadline has now been extended to December 31, 2025, allowing units additional time to comply. The tax credit facility will help minimize installation costs, ensuring smooth adoption of the monitoring system.
The move follows discussions between FBR and APTMA addressing concerns such as camera installation costs, cost-sharing options, assurance against further harassment, and allowances for variations in raw material usage. The FBR also plans to appoint two additional vendors to provide competitive rates for spinning units, ensuring affordability and ease of compliance.
According to S.R.O. 1963 (I)/2025, all registered textile spinning units must now be electronically monitored via video analytics in line with the Sales Tax Act, 1990, reinforcing transparency and modernization in the sector.
This initiative is expected to improve operational efficiency, reduce costs, and strengthen compliance across Pakistan’s textile spinning industry.