FBR to oversee production of cigarettes, sugar, and cement through ‘digital eye’

ISLAMABAD: The Federal Board of Revenue (FBR) has implemented new measures to closely monitor the production of certain goods, ensuring transparency through video surveillance before allowing their removal from manufacturing premises.

This directive, aimed at industries like tobacco, sugar, cement, steel, and fertiliser, mandates that finished products undergo a thorough monitoring process using a “digital eye” system before they can be cleared for distribution.

Under the revised Sales Tax Rules, announced through SRO364 (I)2025 on Friday, manufacturers are prohibited from moving their goods until the production process is verified via video surveillance.

The term “digital eye” refers to specialised software used by the FBR to monitor and capture production data in real-time. This system can identify specific objects and behaviours, providing an accurate count of production output through video footage.

The new system involves the installation of monitoring equipment at the production lines, approved by the FBR, that tracks production activities in real-time. The collected data is transmitted to the FBR’s Central Control Unit, enabling continuous oversight. The system also includes video analytics to detect unexpected disruptions, perform quantitative analysis, and assist in data collection that may be used for legal or regulatory action if needed.

This move by the FBR is designed to ensure greater accountability within key manufacturing sectors and to curb any potential tax evasion or malpractices in the production chain.

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