FBR Uncovers Rs. 30 Billion Annual Tax Evasion in Tile Sector, Orders Camera Monitoring Across Industries

Pakistan’s Federal Board of Revenue (FBR) has uncovered annual sales tax evasion of Rs. 30 billion in the country’s tile manufacturing sector and announced a sweeping plan to install monitoring cameras across 17 key industries to curb tax fraud. FBR Chairman Rashid Langrial, in a briefing to the Senate Finance Committee, announced that tile manufacturers will be required to install monitoring cameras at kilns, packaging areas, and entry and exit points to track production. Langrial stated that if companies refuse to comply, the government will have no choice but to shut down their operations. He pointed to widespread under-reporting and unreliable production data in the sector as the reason for this strict measure. The FBR has already installed cameras in sugar mills, a sector where government ministers have business interests. “The Prime Minister has directed that all sugar mills be monitored,” Langrial said. This year, the FBR expects to collect an additional Rs. 76 billion from the sugar sector and Rs. 102 billion from cement. For the tile sector, the FBR has decided to install four cameras per facility instead of the previously planned sixteen. Langrial acknowledged the possibility of a revenue shortfall this month but said no new tax measures have been decided yet to cover the gap.