Top Takeaways:
- Pakistan orders IP-based CCTV across all tobacco factories to track production in real time.
- Finished goods can’t leave facilities unless fully recorded under new STGO 7-2025.
- FBR says proper monitoring could lift revenues to roughly Rs 600 billion.
Pakistan’s tax authority has ordered all tobacco manufacturing units to install Internet Protocol (IP)-based CCTV cameras to monitor production and prevent tax evasion, the Federal Board of Revenue (FBR) said.
According to Sales Tax General Order No. 7 of 2025, finished goods may not leave factory premises unless the entire production process—from green-leaf threshing to packaging—has been fully recorded in real time.
The directive applies to both local and multinational firms and covers leaf processing plants, cigarette assembly lines, and storage facilities.
Pakistan’s domestic cigarette industry is a significant source of revenue. The FBR collects an 18% sales tax and federal excise duty, and officials estimate the sector could generate up to Rs 600 billion (approximately US$2.1 billion) if monitoring improvements prevent under-reporting.
The FBR stated the move aims to provide “transparent, real-time oversight of production” and ensure manufacturing output matches tax filings.
