Tea manufacturers and packers must install barcode-based monitoring systems across all production lines by December 10, 2026, under a new FBR sales tax order.
ISLAMABAD: The Federal Board of Revenue (FBR) has made electronic production monitoring mandatory for all registered companies involved in manufacturing, blending and packing packaged tea, introducing stricter oversight of production and sales tax compliance.
The FBR issued Sales Tax General Order (STGO) No. 35 of 2026 under Section 40C of the Sales Tax Act, 1990, directing tea manufacturers and packers, including toll and contract packers, to install and operationalise the prescribed electronic monitoring system.
Under the order, all registered businesses must complete the installation and operationalisation of the system by December 10, 2026.
The monitoring requirement covers black, green and flavoured tea, tea bags, instant tea, tea extracts and concentrates, as well as tea-based preparations, including instant premixes containing milk powder or sugar. All retail packaging formats and sizes will fall within the regime.
Barcode monitoring on every packing line
The FBR has directed manufacturers to install the required hardware and software on every packing line, after retail packs have been filled and sealed.
Industrial barcode scanners will identify each product’s stock keeping unit (SKU), while counting sensors will record the number of packs produced. Production data will be recorded SKU-wise and transmitted to the FBR through systems supplied by authorised vendors.
Companies whose products do not carry barcodes, or use barcodes that are not unique to individual SKUs, must introduce compliant barcodes within 15 days of the order’s issuance.
Each distinct brand, blend, net weight and packaging type must have a separate barcode. Manufacturers must also register product information, including brand, blend, weight, packaging type, retail price, barcode number and product photographs, with an authorised vendor.
Any new SKU or changes to an existing product must be registered at least seven days before packing.
Businesses operating manual packing facilities must establish conveyors or designated scanning points to ensure every retail pack is counted before removal or dispatch.
Four authorised vendors named
The FBR has authorised the following companies to provide electronic production monitoring solutions:
• Excellence Delivered (ExD) (Pvt) Ltd
• National Radio and Telecommunication Corporation (NRTC)
• Tollink Pakistan (Pvt) Ltd
• AJCL (Pvt) Ltd
The systems must support real-time production monitoring, barcode identification, automated counting, data transmission, video monitoring, audit logs and production reporting.
They must also detect and report abnormal activities, including unexpected production stoppages, barcode mismatches, equipment failures, tampering and attempts to bypass monitoring.
Tea cannot be removed without monitoring
Under the order, registered manufacturers and packers will not be allowed to remove packaged tea from their business premises unless its production has been monitored in accordance with Chapter XIV-BA of the Sales Tax Rules, 2006.
Companies must provide the necessary infrastructure, electricity, connectivity and system access, and pay the applicable monitoring fees and charges.
The FBR has directed Chief Commissioners Inland Revenue to appoint dedicated focal persons to coordinate with manufacturers and authorised vendors, ensure timely implementation and bring all eligible businesses under the monitoring regime.
The order takes immediate effect and applies to all registered packaged tea manufacturers and packers, including those not appearing on the FBR’s enclosed jurisdiction-wise list.