FBR mandates monitoring systems for businesses to avoid sealing

The Federal Board of Revenue (FBR) has issued a notification amending the Sales Tax Rules 2006, mandating that registered businesses install production monitoring, video surveillance, or digital eye systems. Businesses that fail to connect to the FBR monitoring system will face enforcement actions, including the potential sealing of their premises.

The enforcement process requires a written report from an Assistant Commissioner Inland Revenue to the Commissioner, who will then conduct an inquiry and submit findings to the Chief Commissioner. The Chief Commissioner holds the authority to issue written orders for the sealing of either the entire business location or specific sections. Law enforcement assistance from the police may be utilized during these operations.

To reopen a sealed business, owners must pay a prescribed fine and install the required monitoring system in the presence of an FBR technical team. Once the system is verified, the relevant Commissioner must issue a certificate within three days. The FBR indicated that these electronic monitoring regulations may be expanded to include additional businesses and manufacturers in the future.