FBR introduces electronic monitoring system to curb tax evasion in bottled water sector
ISLAMABAD: The Federal Board of Revenue (FBR) has decided to implement a strict electronic monitoring system in the bottled water industry to prevent tax evasion and ensure accurate collection of sales tax.
According to the FBR, modern technology will be used to closely monitor the entire production process, while a comprehensive electronic monitoring mechanism is being introduced to ensure transparency in tax collection.
Under the new system, all bottled water manufacturing companies have been directed to complete installation by June 15, 2026. The system will include industrial barcode scanners, counting sensors, and IP cameras, along with mandatory installation of network video recorders, programmable logic controllers, and LED displays. An uninterrupted power supply system will also be an essential part of the monitoring setup.
The FBR said that specialized production monitoring software will transmit real-time data directly to the tax authority. Using real-time object detection technology, the system will automatically count bottles and identify production speed as well as any suspicious activity.
The board further stated that all production data will be securely stored and archived for legal proceedings if required. It added that no vendor will be allowed to install the system without prior approval from the FBR.
In this regard, Chief Commissioners Inland Revenue have also been instructed to appoint focal persons to oversee the implementation of the new monitoring system across the sector.
