The Federal Board of Revenue (FBR) plans to make tax monitoring systems operational across 18 sectors by December 31, 2026. The initiative aims to improve tax collection and reduce tax evasion across the country.
The progress was discussed during a meeting on FBR reforms chaired by Prime Minister Shehbaz Sharif. Officials briefed the meeting on the installation of monitoring equipment in different industries.
According to the briefing, monitoring systems have already been fully installed in five sectors. These include sugar, cement, tobacco, tiles, and fertilizer.
The government is also working to expand the system to other industries. Equipment purchases have been completed for textiles, packaged water, packaged juice, and packaged milk.
The remaining installation work will continue according to the government’s planned schedule. Authorities expect the monitoring systems across all 18 sectors to become fully operational by the end of December.
FBR Sets Deadlines for Equipment Procurement
The government has established separate deadlines for purchasing equipment in several sectors. Equipment for the steel, poultry, and tire industries is scheduled for purchase by October 15, 2026.
Procurement for tea, domestic electronics, leather, paper and board, and oil and ghee is expected to be completed by October 30. These deadlines are part of the broader plan to introduce monitoring systems across the selected industries.
The systems are intended to help authorities monitor production and improve the reporting of taxable activities. Better monitoring could also help identify gaps in tax compliance.
The meeting reviewed the progress of FBR reforms and assessed the readiness of the monitoring systems. Officials also discussed developments across productive sectors following a detailed evaluation.
Prime Minister Shehbaz Sharif appreciated the team involved in the review. The government aims to complete the rollout within the announced timeframe.
Government Reports Rs. 1.3 Trillion in Additional Taxes
The briefing also highlighted the financial impact of government enforcement measures. Officials said these measures generated an additional Rs. 1.3 trillion in tax revenue over the past three years.
According to the briefing, this represented a 40 percent increase in tax collection. The government attributed the additional revenue to its enforcement efforts.
The planned expansion of tax monitoring systems is another step in the government’s efforts to strengthen revenue collection. Authorities expect the systems to improve oversight and help address tax evasion.
Tax Monitoring Rollout Expected by December 31
The government has set December 31, 2026, as the deadline for making monitoring systems operational across all 18 sectors. Several industries have completed installation or equipment procurement, while others remain under preparation.
The upcoming deadlines will determine progress in the remaining sectors. The full rollout is expected to support the government’s wider tax reform objectives.
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The initiative places greater emphasis on monitoring industrial activity and improving tax compliance. Its implementation will be important in assessing how effectively the new systems support revenue collection and reduce evasion.
