ISLAMABAD: Pakistan’s tile industry has been flagged for evading nearly Rs30 billion in annual Sales Tax, prompting the Federal Board of Revenue (FBR) to tighten monitoring across 17 industrial sectors. FBR Chairman Rashid Langrial announced that camera-based production tracking will be implemented to curb widespread tax manipulation, following successful interventions in the sugar and cement industries.
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The chairman warned that tile manufacturers refusing to install monitoring cameras could face shutdowns, as the FBR no longer trusts self-reported production data. To make the process more efficient, the requirement has been reduced from 16 to four strategically placed cameras covering kilns, packaging areas, and all entry and exit points. Langrial said this system is crucial for accurate tracking and revenue protection.
The FBR’s monitoring initiative began with sugar mills, in line with directives from the prime minister, and will eventually extend to all industrial sectors. The move comes as Pakistan reported a 32 percent increase in sales tax collections for FY 2024-25, reaching PKR 1,619.5 billion, with top contributors including electricity, petroleum, sugar, cement, and cotton yarn.
The automotive sector showed remarkable growth, with vehicle and motorcycle sales driving a 159 percent and 136 percent rise in related sales tax revenue, respectively. Import sales tax also increased by 22.4 percent, totaling PKR 2,281.9 billion, highlighting improved compliance and economic resilience.
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Langrial emphasized that the camera-based monitoring system is a key step in protecting Pakistan’s national exchequer and ensuring transparency across industries prone to tax evasion.