FBR tightens monitoring of key industries to improve tax collection

Add ARY News on GoogleFollow on Google DiscoverAssociated Press of PakistanAAResizeISLAMABAD: The Federal Board of Revenue (FBR) has introduced a new monitoring mechanism aimed at improving sales tax collection and curbing tax evasion, in line with the targets agreed with the International Monetary Fund (IMF).

According to a notification issued by the FBR, factories and manufacturing units in several key sectors will be subject to enhanced production monitoring to ensure accurate reporting of sales and tax liabilities.

The monitoring programme will cover manufacturers of packaged tea, ghee and edible oil, as well as factories producing electronics, home appliances, paper and cardboard.

The FBR has also included leather products, garments, textiles and ginning factories in the monitoring framework.

Under the notification, manufacturers will be required to have their production monitored for a period of three years through FBR-approved monitoring and digital labelling companies.

Read more: Sales Tax evasion uncovered in tile sector; FBR moves to install monitoring cameras

The approved companies include Obzidian Technologies, Tollink Pakistan, Authentic and ISSM Labelling, according to officials.

Manufacturers will be required to obtain monitoring equipment from one of the FBR-approved companies. The equipment will be used to monitor production and provide data to the tax authorities to help determine actual sales and ensure accurate payment of sales tax.

Officials said the monitoring mechanism will also cover beverage and textile factories, bottled-water and tile manufacturing units, and factories producing packaged milk.

The FBR expects the enhanced monitoring system to improve transparency in industrial production, strengthen sales tax collection and help prevent the concealment of actual production and sales.

The measure forms part of the government’s broader efforts to strengthen tax administration and meet revenue-related commitments under the IMF programme

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