FBR Moves to Track Undocumented Cotton Bales with Video Surveillance System

The Federal Board of Revenue has moved to bring millions of undocumented cotton bales, commonly referred to as Gol Mall, into the formal system by introducing video surveillance across textile spinning units. The tax authority issued Sales Tax General Order 8 of 2025 on Saturday. The notification states that, under Section 40C(2) of the Sales Tax Act 1990 and Chapter XIV-BA of the Sales Tax Rules 2006, all registered textile spinning units must immediately install a video analytics system as outlined in the rules. The FBR said cotton bale processing at spinning facilities will now be monitored through video surveillance and analytics technology. Production monitoring equipment will be placed at production lines, blendomats, and auto-plucker machines, using vendors approved by the board. The directive requires all registered spinning units to complete installation of the video analytics system, including necessary hardware and software, by December 31, 2025. To ensure timely compliance, chief commissioners will appoint focal persons to coordinate with registered spinning units and authorized vendors during the installation process. The FBR has instructed field formations to prioritize enforcement, particularly for high-risk units suspected of using undocumented cotton bales. A jurisdiction-wise list of registered textile spinning units has already been circulated.