The Federal Board of Revenue (FBR) has directed registered tyre manufacturers across Pakistan to install electronic production monitoring systems by November 30, 2026. Under the new requirement, manufacturers will have to record their production in real time and transmit the information directly to tax authorities.
The move brings Pakistan’s tyre manufacturing industry under the FBR’s electronic monitoring framework as the government continues efforts to improve tax compliance and reduce revenue losses.
According to Sales Tax General Order (STGO) No. 32 of 2026, issued on Friday, registered tyre manufacturers must implement the monitoring system within the prescribed deadline. The directive requires production data to be electronically recorded and shared with the tax authority.
Through this system, the FBR will be able to monitor manufacturing activity more closely and obtain updated information about the quantity of tyres being produced. Electronic reporting is also expected to make it easier for tax officials to compare declared production with actual manufacturing records.
The initiative is part of a broader effort to address Pakistan’s estimated Rs. 3.7 trillion sales tax gap. Improving production monitoring and documentation is among the measures being used to identify potential tax evasion and strengthen revenue collection.
Under conventional monitoring arrangements, tax authorities may face difficulties in independently verifying production figures reported by manufacturers. Electronic systems can help reduce reliance on manual reporting by providing direct access to production-related information.
The tyre industry is the latest addition to a growing list of sectors covered by the FBR’s electronic monitoring regime. The system already applies to several industries and businesses, including packaged tea, household electronics, paper and paperboard, edible oil and ghee, leather, textile spinning and tiles.
Other sectors included in the monitoring framework are packaged milk, juices, bottled water and aerated beverages.
By expanding the system to tyre manufacturing, the FBR is extending its monitoring coverage to another important segment of Pakistan’s industrial economy. The sector supplies products used in passenger vehicles, commercial transportation, agriculture and other areas of economic activity.
For manufacturers, the November 30 deadline means preparing their production facilities for the installation and operation of the required electronic equipment. Companies will also need to ensure that their monitoring systems can accurately record output and transmit the required information to the authorities.
The new requirement highlights the government’s increasing reliance on digital monitoring to improve transparency in industrial production and tax administration.
The effectiveness of the initiative will depend on proper implementation, accurate data transmission and compliance by registered manufacturers. The FBR’s expanded monitoring framework is intended to strengthen oversight of production activities and help narrow the country’s substantial sales tax gap.