Spinning units: FBR-APTMA panel to oversee video-monitoring rollout
ISLAMABAD: The Federal Board of Revenue (FBR) has decided to allow tax credit facility to the textile spinning units against expenses incurred on installation of video analytics system, considerably reducing cost of textile sector.
In this regard, a joint committee of the FBR and All Pakistan Textile Mills Association (Aptma) will monitor implementation of video monitoring systems in spinning units. Committee would deliberate and strategise implementation of video analytics on spinning units. Moreover, committee would design tax credit facility for expense on video analytics. It will submit its report by Friday. From the FBR side, committee members included Dr Najeeb Ullah Chief FBR Transformation Delivery Unit and Javed Iqbal Director Track & Trace.
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On the behalf of textile sector, members of the committee are Kamran Arshad Chairman APTMA, Rehman Naseem Senior Member APTMA and co-opted member is general secretary APTMA Shaid Sattar.
The FBR has decided to electronically monitor production of registered units engaged in textile spinning through video analytics from November 1, but the said deadline has expired. However, the FBR has extended the said time period by December 31, 2025.
The FBR would ensure timely implementation of the systems at the textile units and also decrease the cost of system installation through the facility of the tax credit. This would ensure that the spinning units would be able to install systems at a minimum cost.
Earlier, the APTMA has informed FBR Member Inland Revenue (Operations), FBR, refer to the meeting held on the 10th December 2025 regarding the implementation of video monitoring in spinning units, the association appreciated the constructive discussion and encouraged by the consensus reached with the FBR.
With a view to expedite implementation of video monitoring and to address concerns, APTMA has nominated its committee members to review and resolve any operational and technical issues on a monthly basis to review and resolve any operational challenges that may arise.
According to an S.R.O. 1963 (1)2025 issued by the FBR, in exercise of the powers conferred by sub-section (l) of Section 50 and Section 40c of the Sales Tax Act, 1990, the Federal Board of Revenue is pleased to notify that the production of registered persons engaged in textile spinning shall be electronically monitored through video analytics, in accordance with the provisions of related rules with immediate effect. This notification shall come into force on and from November 1, 2025, it added.
Previously, a meeting on camera installation was held between APTMA management and Member (IR- Operations) FBR.
During the past meeting, the points under discussion included (i) option for non-installation of cameras; (ii) bearing of the cost by FBR itself; (iii) cost breakdown of Rs 3.0 million cameras installation plus Rs 2.0 million per annum; (iv), Possible reduction in cost and adjustment via tax credit or adjustment; (v) Assurance that if these cameras are installed at mills, there will be no further harassment by FBR; (vi) Any variation in raw material/ input materials not to be treated negatively and that allowance should be made of it in system and (vii) Extension in time for installation. The FBR pointed out that the rates approved by FBR were maximum and not fixed. It was negotiable with vendors. FBR is appointing two more vendors for more competitive rates for spinning mills, sources added.
Copyright Business Recorder, 2025