Juice industry urges FBR to extend monitoring system to entire packaged juice industry

LAHORE: The fruit and beverage manufacturers sector has urged the Federal Board of Revenue (FBR) to extend its electronic production monitoring system to the entire packaged juice industry, including undocumented and unregulated manufacturers, warning that selective implementation could place an additional compliance burden on documented companies while leaving non-compliant operators outside the tax net.

The Fruit Juice Council (FJC), a representative body of the packaged juice sector, made this demand in its response to Sales Tax General Order (STGO) No. 04 of 2026 regarding electronic monitoring of packaged juice production, submitted to the FBR recently. The FBR, under the order, has directed all registered persons engaged in the production and packaging of juices, either on their own account or as toll manufacturers, to install an electronic production monitoring solution.

The system is required to capture production in real time and transmit data to the FBR’s Central Control Unit. The council welcomed the government’s initiative, describing electronic monitoring as an important reform that could improve transparency, strengthen tax compliance and support documentation of the packaged juice sector.

However, it said implementation should not remain confined to a few large, documented manufacturers. According to the stakeholders, selective enforcement could result in compliant manufacturers bearing additional costs and regulatory obligations while undocumented operators continue to operate outside the monitoring and tax framework.

It said all manufacturers, packers and toll manufacturers engaged in juice production should be brought within the monitoring and tax net. The Council said bringing such operators into the formal system was essential for ensuring fair enforcement, protecting consumers and broadening the government’s revenue base.

Under the FBR order, registered juice producers were required to make arrangements for installation of the electronic production monitoring system by June 15, 2026.

The FBR has further stipulated that the system should provide real-time capture of the production process, object detection and counting, transmission of production data to the Board, detection of unexpected production stoppages and quantitative production analysis.

The council maintained that an industry-wide approach would create a level playing field for registered businesses that were already documented, audited and contributing to the national exchequer.

It further argued that comprehensive electronic monitoring would help discourage tax evasion, improve documentation of production volumes and ensure that all market participants were subject to the same standards of accountability. The stakeholders have requested the FBR to implement the electronic monitoring framework uniformly across the juice industry, particularly covering unregulated manufacturers of juices and drinks.

This undocumented sector is also probably not compliant with the applicable quality and regulatory standards set by the food authorities or other agencies thus raising health issues, said the stakeholders.

Copyright Business Recorder, 2026