ISLAMABAD: The Federal Board of Revenue (FBR) has made it mandatory for manufacturers of specified taxable goods to procure and install production monitoring systems and related equipment only from an authorized vendor approved by the Board.
In a notification, the FBR said a manufacturer of specified taxable goods, or a registered person or class of registered persons specified under Rule 150ZQR, must buy and install the Production Monitoring System, production monitoring equipment or any other prescribed monitoring mechanism solely from an approved vendor.
The notification also places a compliance requirement on vendors. An authorized vendor must ensure that the systems and equipment it installs conform to the specifications, standards and requirements approved or authorized by the Board.
Scope of the rule
The rule covers electronic monitoring, tracking and identification of production, sale, clearance, stock or any other related activity. Monitoring may be carried out through a Production Monitoring System, video surveillance, video analytics, a "digital eye" or any other prescribed mechanism.
It applies to:
- any registered person or class of registered persons;
- any manufacturer or class of manufacturers;
- any goods specified in the Third Schedule to the Sales Tax Act, 1990; and
- any other taxable goods or class of taxable goods the Board may specify by notification in the official Gazette.
Flexible implementation dates
The notification gives the Board discretion over timing. It may, by notification in the official Gazette or by special order, set the date from which the monitoring system must be installed and operational for any person or class of persons, any manufacturer or class of manufacturers, any specified goods, or any sector or class thereof.
The Board may also set different dates for different persons.
