Karachi, January 1, 2025 – The Federal Board of Revenue (FBR) has launched a cutting-edge “digital eye” system for real-time monitoring and video surveillance of production in Pakistan’s sugar sector. This initiative aims to enhance tax compliance and streamline the monitoring process.
The FBR issued SRO 2082(I)/2024 on December 31, 2024, amending the Sales Tax Rules, 2006, to include provisions for this innovative monitoring mechanism. The updated regulations integrate video analytics and electronic monitoring to track production data in real time.
Key Provisions of the Amended Rules
Under the amended Rule ZQR, the application has been defined as:
• Scope: The chapter’s provisions apply to video surveillance and digital eye systems for electronic monitoring of specified goods, including:
o Items listed in the Third Schedule of the Sales Tax Act, 1990.
o Other goods notified by the FBR through specific orders.
• Implementation: Monitoring through video surveillance, analytics, and digital eye will commence on dates specified by the FBR.
The updated Rule 150 ZQT outlines the framework for electronic monitoring of goods:
1. Production Monitoring: Specified goods manufactured in Pakistan will be monitored through intelligent video surveillance, digital eye systems, and video analytics using approved equipment such as cameras and sensors.
o Real-Time Data Collection: Tracks production using object detection and counting technologies.
o Data Transmission: Sends data to the FBR’s central control room in real time, with provisions for storage and archiving.
o Error Detection: Identifies unexpected production stoppages.
o Quantitative Analysis: Provides insights into production volumes and trends.
o Legal Enforcement: Facilitates data-driven actions against non-compliance.
2. Restrictions: Manufacturers cannot remove goods from production premises without undergoing intelligent video surveillance or digital eye monitoring.
Enhancing Compliance in the Sugar Sector
The FBR emphasized that this advanced system will ensure accurate tax collection and reduce evasion in the sugar sector. By leveraging technology, the FBR aims to establish greater transparency and accountability, reinforcing its commitment to modernizing Pakistan’s tax system.
The initiative reflects the FBR’s broader strategy to incorporate digital solutions across various industries, ensuring efficient monitoring and fostering a fair taxation environment.
