The FBR has authorized four vendors to install and operate electronic production monitoring equipment. The system will be deployed across manufacturing facilities in five sectors.
The sectors include packaged tea, household electronics, paper and paperboard. Edible oil and ghee, along with leather, are also covered by the authorization.
The Federal Board of Revenue issued a notification on Wednesday. It approved four companies to provide production monitoring services under existing sales tax rules.
The authorized vendors are Obsidian Technologies, Tollink Pakistan (Pvt.) Ltd., ISSM Labelling Solutions (Private) Limited, and Authentik.
These companies can supply, install, operate, maintain and repair the required monitoring equipment. Their responsibilities will cover production facilities included under the relevant rules.
The monitoring system will use Internet Protocol cameras and Network Video Recorders. The cameras must continuously capture manufacturing processes in real time.
The Network Video Recorders must store footage from all connected cameras. The recorded material must remain available for at least two months.
The FBR has also set technical requirements for equipment installed at each manufacturing site. Vendors must ensure that all equipment meets the approved specifications.
Installation in each sector will begin after the relevant Sales Tax General Order is issued. The orders will provide the basis for deployment within the respective sectors.
Each authorized vendor must arrange testing of equipment at every installation site. Vendors must also confirm that the systems comply with the required technical standards.
The companies will be required to provide the FBR with access to live camera feeds. They must also provide access to recorded footage as required by the Board.
The authorization will remain valid for three years from its issuance date. However, it may be suspended or canceled before the period ends.
The new authorization adds to the vendors’ existing approvals. Their earlier authorizations will continue under their respective existing terms.
The approval cannot be transferred to another company or party. Vendors also cannot assign or subcontract their responsibilities without written permission.
Such transfers or subcontracting will require prior approval from the Approval Committee. This condition applies to the authorization fully or partly.
The notification also sets rules for ownership and confidentiality of recorded footage. All recordings will remain the property of the FBR.
The footage must be treated as confidential and cannot be shared without Board instructions. This requirement applies to all recordings collected through the monitoring system.
The FBR has also restricted the supply of additional equipment under this authorization. Vendors cannot supply or charge for equipment beyond the specified IP cameras and NVRs.
The monitoring system is intended to provide continuous visibility of production activities. The new arrangement will allow the Board to access live and recorded production footage.
The authorized vendors will be responsible for maintaining the systems throughout the approved period. They will also handle necessary repairs and equipment-related services.
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The latest notification establishes a formal framework for electronic production monitoring. It also outlines technical, operational and confidentiality requirements for participating vendors.
