FBR Sets November 30 Deadline for Digital Tyre Production Monitoring

ISLAMABAD: The Federal Board of Revenue (FBR) has directed all registered tyre manufacturers in Pakistan to install and operationalise electronic production monitoring systems by November 30, 2026, making digital tracking and real-time production reporting mandatory.

Under Sales Tax General Order No. 32 of 2026, the requirement applies to all registered manufacturers producing tyres covered under the Third Schedule of the Sales Tax Act, 1990. The order has taken immediate effect.

Manufacturers must install monitoring equipment and software at every curing press and takeaway conveyor or finishing line at their production facilities.

The systems will automatically count completed tyres and distinguish actual production from maintenance, machine warm-up and other non-production activities. They will also classify individual tyres according to their diameter, width, tread pattern and weight.

Production data must be transmitted directly to the FBR's central monitoring system in real time, enabling tax authorities to maintain output records and verify reported manufacturing figures.

The electronic monitoring mechanism must also detect and report equipment failures, unexpected shutdowns, tampering, system bypasses and interruptions. Manufacturers will be required to maintain audit logs and production records for verification purposes.

Under the new rules, registered manufacturers will not be permitted to remove tyres from their business premises unless their production has been recorded through the prescribed electronic monitoring system.

Companies must arrange the necessary IT infrastructure, internet connectivity, electricity and access for installing and operating the equipment. They will also be responsible for paying applicable fees and charges under the Sales Tax Rules, 2006.

FBR Authorises Monitoring Service Provider

The FBR has authorised ISSM Labelling Solutions (Private) Limited to provide electronic production monitoring solutions for the tyre industry through an authorisation order dated October 30, 2026.

The company will supply systems that meet the prescribed technical standards, including automated production counting, real-time data transmission, information storage and detection of abnormal manufacturing activities.

Nine Manufacturers Named for Implementation

The order initially identifies nine registered tyre manufacturers for implementation of the monitoring system:

Ghandhara Tyre and Rubber Company Limited

Service Long March Tyres Limited

Service Tyres (Private) Limited

Panther Tyres Limited

Diamond Tyres Limited

Service Industries Limited

Ghauri Tyre & Tube (Private) Limited

Crown Tyres Limited

United Rubber (Private) Limited

Among these companies, six fall under the jurisdiction of the Large Taxpayers Office Lahore, while one each is registered with the Large Taxpayers Office Karachi, Large Taxpayers Office Multan and Regional Tax Office Peshawar.

However, the FBR clarified that the initial list is not exhaustive. All other registered tyre manufacturers must also comply with the electronic monitoring requirements.

Chief Commissioners Inland Revenue have been instructed to appoint dedicated focal persons to coordinate with manufacturers, the authorised service provider and the FBR to ensure installation is completed before the deadline.

Regional tax offices and other field formations have also been directed to identify manufacturers missing from the initial list, bring them into the monitoring system and submit progress reports to the FBR.

The measure is aimed at increasing visibility over tyre production, strengthening tax monitoring and ensuring that manufacturing output is digitally recorded and verifiable.