An undated image of FBR building. — FBR website
Consistent with Pakistan's zealous push for digitalisation, the Federal Board of Revenue (FBR) has made it mandatory for all tobacco manufacturing units in the country to install IP-CCTV cameras.
The camera deployment has been recommended for designated points within tobacco production facilities to ensure unwavering monitoring of manufacturing processes.
Part of the new directive, Sales Tax General Order No. 7 of 2025, the FBR has specified that no tobacco manufacturer will be permitted to remove any finished products from the factory premises before undergoing production monitoring through the IP-CCTV system.
It is expected that this decision, approved by the Member Inland Revenue (Operations), would enhance transparency and combat tax evasion within Pakistan's tobacco sector. The revenue board has emphasised that the order is effective immediately and will be strictly enforced.
Citing officials, Bloom Pakistan noted that this initiative will facilitate the tracking of real-time production data and combat the sale of untaxed cigarettes.
For failing to comply with these regulations, manufacturers may face penalties or even suspension of their operations.
With its latest digitalisation effort in view, it seems that the FBR is committed to ensuring compliance in the tobacco industry and widening the tax net.