Pakistan’s Federal Board of Revenue (FBR) has discovered annual sales tax evasion of Rs. 30 billion in the tile manufacturing sector. To address this, the FBR announced plans to install monitoring cameras across 17 key industries.
FBR Chairman Rashid Langrial told the Senate Finance Committee that tile manufacturers must install cameras at kilns, packaging areas, and entry and exit points. The move aims to track production and prevent under-reporting. Companies that fail to comply could face shutdowns, according to the FBR.
Langrial explained that unreliable production data and widespread tax evasion prompted the strict measures. He added that the FBR has already implemented similar camera monitoring in sugar mills, where government ministers hold business interests. “The Prime Minister has directed that all sugar mills be monitored,” he said.
The FBR expects significant revenue gains from these measures. The sugar sector is projected to generate an additional Rs. 76 billion, while the cement industry is expected to contribute Rs. 102 billion this year. For the tile sector, the FBR decided to reduce the number of cameras per facility from sixteen to four. This adjustment ensures efficient monitoring while maintaining oversight.
Chairman Langrial also acknowledged the possibility of a revenue shortfall this month. However, he noted that no new tax measures have been planned to cover the gap.
Industry experts say the FBR’s initiative will improve transparency and strengthen tax compliance. Cameras are expected to reduce fraud, ensure accurate reporting, and support the government’s revenue collection efforts.
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The FBR’s expanded monitoring plan reflects Pakistan’s broader push to improve accountability in high-value industrial sectors. By tracking production more closely, the FBR aims to prevent tax evasion and enhance the overall efficiency of revenue collection.
