KARACHI (Monitoring Desk) – The Federal Board of Revenue (FBR) has uncovered extensive tax evasion—estimated at Rs30 billion each year—in the country’s tile industry, leading to a decision to implement camera-based surveillance at manufacturing sites to ensure accurate reporting of production.
The tax authority revealed that it is rolling out monitoring cameras across 17 major industrial sectors to plug persistent sales tax leakages. With this step, the FBR expects to secure an additional Rs76 billion from the sugar industry and around Rs102 billion from the cement sector during the current fiscal year.
Briefing the Senate Finance Committee, chaired by Senator Saleem Mandviwalla, FBR Chairman Rashid Langrial disclosed that tile manufacturers had been resisting the camera installation initiative. He cautioned that industries unwilling to comply should consider closing down operations.
Langrial said the board has revised its earlier plan of installing 16 cameras per factory and decided to place four strategic surveillance cameras in every tile manufacturing plant. These will monitor crucial areas, including kilns, packaging sections, and all entry and exit points.
The chairman noted that the FBR will now track the production of each tile, as companies have repeatedly been found submitting unreliable production figures. This underreporting, he explained, has been a major factor behind recurring monthly revenue shortfalls.
He added that no new tax measures have been approved so far to cover the expected revenue gap in January. However, surveillance through cameras has already begun in sugar mills and will be expanded to all major manufacturing sectors.
Emphasizing the need for transparency, Langrial also pointed out that many sitting ministers own sugar mills, yet the Prime Minister has instructed the FBR to ensure uniform monitoring across all units without exception. The board aims to tighten oversight of industrial production data to strengthen revenue collection.
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