The Federal Board of Revenue (FBR) has ordered all registered tyre manufacturers in Pakistan to install and operationalise electronic production monitoring systems by November 30, 2026, in a move aimed at strengthening tax compliance and bringing greater transparency to the sector.
What happened?
Through Sales Tax General Order No. 32 of 2026, issued on October 30 by Inland Revenue Operations under the Sales Tax Act, 1990 and the Sales Tax Rules, 2006, the FBR has made electronic monitoring mandatory for every registered person involved in tyre manufacturing.
Key details
- Manufacturers must install specialised hardware and software at every curing press and takeaway conveyor or finishing line in their production facilities.
- The systems will automatically count cured tyres, tell genuine production cycles apart from maintenance, warm-up and dry cycles, and identify green (uncured) tyres.
- Each tyre stock keeping unit will be identified using approved master data, including diameter, width, tread design or pattern, and weight.
- Only monitoring solutions offered by FBR-authorised vendors will be accepted; ISSM Labelling Solutions (Private) Limited has been authorised to supply the technology for the tyre sector.
- The systems must record production in real time, transmit the data securely to the FBR’s Central Control Unit, and detect unexpected stoppages, equipment failures, tampering and attempts to bypass monitoring.
- Tyres cannot be removed from a manufacturer’s premises unless their production has been electronically monitored under the prescribed rules.
- Nine manufacturers are named in the initial rollout list, including Ghandhara Tyre and Rubber Company, Service Long March Tyres, Service Tyres, Panther Tyres, Diamond Tyres, Service Industries, Ghauri Tyre and Tube, Crown Tyres and United Rubber, but the FBR says all other registered manufacturers must also comply.
- Manufacturers must arrange the hardware, software, internet connectivity and power supply themselves and pay the applicable monitoring fees, while Chief Commissioners Inland Revenue will appoint focal persons to coordinate implementation.
What it means for people in Pakistan
For ordinary buyers, the change is about transparency in a major manufacturing sector: production figures reported by tyre makers will now be matched against independently recorded data. The tyre rollout is part of the FBR’s wider programme to extend electronic production monitoring across 18 manufacturing sectors by the end of December 2026.
