FBR authorises four vendors to monitor production in five sectors

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The approved vendors will supply and operate IP cameras and network video recorders for electronic production monitoring under Sales Tax Rules.

The Federal Board of Revenue (FBR) has authorised four vendors to supply, install and operate electronic production monitoring equipment in five manufacturing sectors under Chapter XIV-BA of the Sales Tax Rules, 2006.

The authorisation covers the packaged tea, household electronics, paper and paperboard, edible oil and ghee, and leather sectors, expanding the scope of electronic monitoring of production lines for registered manufacturers.

Four Vendors Receive Approval

The authorised vendors are Obsidian Technologies, Tollink Pakistan (Pvt.) Ltd., ISSM Labelling Solutions (Private) Limited and Authentik.

The FBR said the vendors have already deployed and operated production monitoring equipment in sectors covered by their existing authorisations, demonstrating their capability to supply, install, operate and maintain the required systems.

The new authorisation has been issued under Section 40C of the Sales Tax Act, 1990, read with Chapter XIV-BA of the Sales Tax Rules, 2006, following recommendations from the Approval Committee.

The authorisation is in addition to the vendors’ existing approvals, which will remain valid according to their respective terms

IP Cameras and Two-Month Recording

Under the new approval, vendors will be responsible for supplying only Internet Protocol (IP) cameras and Network Video Recorders (NVRs) with recording storage of at least two months.

The cameras must provide continuous, real-time coverage of production processes at each production line, while NVRs must record and retain all camera feeds for the required period.

No other equipment or software may be supplied or charged for under the authorisation.

Deployment in each sector will begin following issuance of the relevant Sales Tax General Order (STGO), with equipment required to meet technical specifications approved by the FBR.

FBR to Access Production Footage

The vendors will be required to test equipment at every installation site, confirm compliance with FBR-approved specifications and provide the Board with access to live feeds and recorded footage in the prescribed manner.

All footage and recordings captured through the monitoring systems will remain the property of the FBR and will be treated as confidential. Vendors will not be permitted to share the data with any other party except as directed by the Board.

The authorisation will remain valid for three years from the date of issue, unless suspended or cancelled earlier.

Strict Conditions for Vendors

The authorisation is non-transferable, and vendors cannot assign or subcontract their responsibilities without prior written approval from the Approval Committee.

The FBR will also conduct periodic reviews of the effectiveness of the monitoring equipment, while vendors will be required to implement any corrective measures directed by the Board.

The Approval Committee may suspend or cancel an authorisation, either for all sectors or specific sectors, if a vendor breaches the prescribed conditions or applicable rules, subject to an opportunity of being heard.

Vendors seeking renewal will have to apply before expiry in accordance with the Sales Tax Rules.