Aerated waters, beverage production: FBR launches real-time monitoring
ISLAMABAD: The Federal Board of Revenue (FBR) has launched an electronic production monitoring regime for documented manufacturers of aerated waters and beverages across Pakistan, requiring all registered producers to install the prescribed monitoring infrastructure, but no check on over 30 percent illegal/counterfeit manufacturing factories in Pakistan.
Presently, over 30 percent of the beverage industry is illegal and manufacturing illicit/counterfeit products with no check by the FBR or enforcement agencies.
The implementation of production monitoring system by the FBR on formal sector requires documentation of 30 percent counterfeit organised factories operating across Pakistan.
The tax authority issued Sales Tax General Order (STGO) 07/2026, making it mandatory for beverage manufacturers, including toll manufacturers, to implement an electronic production monitoring system with immediate effect.
The initiative has been introduced under Section 40C of the Sales Tax Act, 1990, and the relevant provisions of Chapter XIV-BA of the Sales Tax Rules, 2006. The move is aimed at improving transparency, strengthening tax compliance and enhancing revenue collection through real-time monitoring of production activities.
According to the order, manufacturers must install a comprehensive monitoring framework comprising specialised hardware and software capable of recording and transmitting production data directly to the FBR.
The required infrastructure includes industrial barcode scanners, counting sensors, industrial computers, IP cameras, network video recorders, programmable logic controllers (PLCs), human-machine interfaces (HMIs), LED displays, uninterrupted power supply (UPS) systems and weatherproof electrical cabinets.
In addition, manufacturers will be required to deploy production monitoring software and compatible operating systems capable of transmitting production information to the FBR’s central monitoring platform in real time.
The FBR said all monitoring equipment must be supplied, installed and maintained by vendors authorised by the Board. Chief Commissioners Inland Revenue have also been directed to appoint dedicated focal persons to coordinate implementation with manufacturers and approved vendors.
Under the new regime, the electronic monitoring system will capture production activity in real time, count products moving through production lines, detect unexpected production stoppages and generate quantitative production analyses.
The framework will also support advanced data analytics, enabling the tax authority to identify irregularities and undertake legal or enforcement actions where necessary.
Tax experts said the initiative forms part of the FBR’s broader digitisation strategy aimed at reducing under-reporting, improving documentation of economic activity and minimising revenue leakages in key sectors.
They noted that real-time monitoring of production volumes could significantly improve tax administration by providing greater visibility into manufacturing operations and strengthening compliance mechanisms.
Copyright Business Recorder, 2026
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