The Federal Board of Revenue (FBR) has made electronic production monitoring mandatory for registered tyre manufacturers, giving the sector until 30 November 2026 to install and activate the prescribed hardware and software. The directive was issued through Sales Tax General Order No. 32 of 2026, dated 30 October.
The system is designed to record tyre production at factory level and transmit the information to the FBR’s central monitoring system. The order applies to registered persons manufacturing tyres covered by the Third Schedule of the Sales Tax Act, 1990. Businesses can also review Verity Pakistan’s practical guide to checking FBR Active Taxpayer status. It is not limited to the companies named in the order’s annex.
What does the FBR tyre monitoring order require?
Manufacturers must install the prescribed monitoring equipment at the curing press and at the takeaway conveyor or finishing line of each manufacturing facility. The system must record production in a way that allows the tax authority to identify completed tyres and reconcile output with the manufacturer’s records.
The monitoring solution is expected to:
- Count each cured tyre produced on the monitored line.
- Distinguish valid production from dry runs, maintenance cycles and warm-up activity.
- Identify green or uncured tyres separately from completed products.
- Classify each tyre using approved stock-keeping unit data, including diameter, width, tread design or pattern, and weight.
- Capture production events in real time and securely transmit the data to the FBR’s central control system.
- Record unexpected stoppages, equipment failures, interruptions, tampering or attempts to bypass the monitoring equipment.
What is the deadline?
Registered tyre manufacturers must complete installation, integration and operationalisation of the system by 30 November 2026. The order took effect immediately on its issue date, 30 October 2026, so the compliance period is short.
The directive requires manufacturers to arrange the necessary hardware, software, connectivity, access and supporting infrastructure at every curing press and finishing line. Companies should not treat the deadline as applying only to the purchase of equipment; the order calls for the system to be operational.
Which tyre manufacturers are covered?
The FBR’s annex contains a non-exhaustive list of nine registered manufacturers. These include:
- 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 and Tube (Private) Limited
- Crown Tyres Limited
- United Rubber (Private) Limited
The annex is expressly described as non-exhaustive. Any other registered person engaged in tyre manufacturing is also required to comply, even if its name does not appear in the list.
Can tyres be dispatched without electronic monitoring?
The order states that a registered tyre manufacturer cannot remove tyres from its business premises unless their production has been monitored under the relevant rules. Manufacturers must provide the required access, information-technology infrastructure, connectivity and power supply. Applicable fees and charges are governed by the rules.
This makes the deadline an operational issue as well as a tax-compliance requirement. A factory that has installed equipment but cannot transmit the required production data may still face a problem when it comes to dispatching goods.
Who is the authorised vendor?
The FBR order identifies ISSM Labelling Solutions (Private) Limited as the authorised vendor for electronic production monitoring in the tyre sector. The order also requires the vendor’s solution to meet the technical and reporting requirements prescribed under the Sales Tax Rules and the relevant authorisation.
Practical compliance checklist for manufacturers
- Map every production line: Identify all curing presses and the associated takeaway conveyors or finishing lines at each facility.
- Validate product data: Check that the approved SKU master data correctly records tyre diameter, width, tread pattern and weight.
- Check infrastructure: Confirm that power, network connectivity, equipment access and the required information-technology facilities are available at each location.
- Coordinate installation: Contact the authorised vendor and the relevant FBR focal person to plan installation and integration.
- Test before the deadline: Confirm that production events are recorded, transmitted and archived correctly, including downtime and abnormal events.
- Keep audit records: Maintain documentation of installation, system tests, maintenance and any interruptions so that compliance can be demonstrated.
Why the order matters
Electronic monitoring gives the tax authority a more direct record of manufacturing output than periodic declarations alone. For manufacturers, it creates a new requirement to connect production equipment with a central reporting system and keep that system functioning.
The practical impact will depend on implementation: the reliability of the equipment, the accuracy of product data, the speed of installation and how technical failures are handled. Companies should review the complete order and the applicable rules with their tax and technical teams rather than relying only on a short news summary.
Featured image: Shavr IK via Unsplash. Illustrative industrial tyre production image.
Official document: FBR Sales Tax General Order No. 32 of 2026 — Electronic Monitoring of Production in the Tyre Sector.