ISLAMABAD, September 30, 2026: The Federal Board of Revenue has tightened electronic monitoring requirements under the Sales Tax Rules, bringing registered businesses that fail to connect prescribed production-monitoring systems with the FBR network under the threat of enforcement action, including sealing of business premises.
Under the revised framework, businesses covered by the rules may be required to install production monitoring, video surveillance, video analytics or the FBR’s “digital eye” system for real-time monitoring of specified goods. FBR’s existing rules already provide for electronic monitoring of production through such systems, while recent orders have extended these requirements to sectors including tiles, packaged milk, bottled water and beverages.
The new notification also sets out a formal procedure for sealing premises where a registered business fails to comply with the monitoring and integration requirements.
According to the notification, an assistant commissioner or an officer of higher rank may submit a written report to the commissioner of Inland Revenue. The commissioner may then conduct an inquiry and forward the case to the chief commissioner, who will issue a written order on whether the business premises should be sealed.
The action may apply to the entire premises or only to a specified section.
Before sealing, the taxpayer will be provided with a copy of the relevant order. The premises may remain sealed until the required monitoring system is installed and properly connected with FBR.
Businesses seeking to reopen sealed premises will also be required to pay the prescribed penalty and complete installation of the monitoring system.
FBR’s technical team will be present during installation, while the commissioner will issue a compliance certificate within three days after successful installation, according to the notification.
The rules may also be extended to additional businesses and manufacturers through separate FBR orders.
FBR has increasingly expanded electronic production monitoring as part of efforts to improve tax compliance and reduce under-reporting. The authority says video analytics and related systems allow production data to be collected in real time with limited human intervention.