FBR Orders Tyre Monitoring for All Makers
The Federal Board of Revenue has ordered all registered tyre makers in Pakistan to install electronic production monitoring systems by November 30, 2026. The directive came on Friday through Sales Tax General Order No. 32 of 2026. It makes tyre monitoring mandatory for every registered person involved in tyre manufacturing.
Under the order, makers must install prescribed hardware and software at every curing press and takeaway conveyor or finishing line. The systems will record production in real time and send the data to the tax authority’s central control system. No tyre may leave a factory’s premises unless its production has gone through the prescribed electronic monitoring.
The monitoring system will count each cured tyre. It will tell actual production apart from dry runs, maintenance and warm-up cycles, and it will identify uncured tyres. It will also identify each tyre by diameter, width, tread design or pattern, and weight, using approved stock keeping unit data. The system must detect and report unexpected stoppages, equipment failures, tampering, interruptions and attempts to bypass the equipment.
How tyre monitoring will work
The FBR has authorised ISSM Labelling Solutions (Pvt) Ltd to provide electronic production monitoring solutions to the tyre industry. Only solutions from authorised vendors will count. The vendor must ensure real-time recording of production events and secure transmission of data to the FBR’s central system. The arrangement will keep audit logs and generate production reports and analytical data for reconciliation and enforcement under the sales tax law.
Makers will bear the cost of the setup. They must provide the information technology infrastructure, connectivity, electricity supply and access to monitoring equipment, along with the prescribed fees and charges. The chief commissioners of Inland Revenue must nominate dedicated focal persons to coordinate with makers, the authorised vendor and the FBR, so that installation and operation stay on schedule. Field formations must also find makers missing from the initial list, bring them into the regime, and send progress reports to the FBR.
The FBR initially named nine registered tyre makers for the system. They are Ghandhara Tyre and Rubber Company Ltd, Service Long March Tyres Ltd, Service Tyres (Private) Ltd, Panther Tyres Ltd, Diamond Tyres Ltd, Service Industries Ltd, Ghauri Tyre and Tube (Pvt) Ltd, Crown Tyres Ltd and United Rubber (Pvt) Ltd. The board stressed that the list was not exhaustive, and all other registered makers engaged in tyre production must also comply.
Why the FBR is widening the net
Tyre monitoring is the latest step in a much wider programme. The electronic production monitoring regime already covers packaged tea, household electronics, paper and paperboard, edible oil and ghee, leather, textile spinning, tiles, packaged milk, packaged juices, bottled water and aerated beverages. The FBR says the system helps close a Rs3.7 trillion sales tax gap between collections and actual potential.
The wider programme aims to bring 18 manufacturing sectors under operational monitoring by December 31, 2026. Systems are already fully installed in sugar, cement, tobacco, tiles and fertiliser. Work is under way in textiles, packaged water, packaged juice and packaged milk. The tyre order, with its November 30 deadline, sits one month ahead of that final target, and the iron and steel sector faces a December 30 deadline under a parallel order.
The context matters for readers following the FBR’s finances. The board faced a Rs157 billion shortfall against its October target with one day of collection left, and its July to October position showed a wider cumulative gap. Textile mills have already faced camera-based monitoring under the same regime. Tyre monitoring follows that pattern: measure production at the factory gate, compare it with reported sales, and close the space for under-reporting.
What happens next
Makers have one month to procure, install, integrate, test and operationalise the systems. The FBR’s field formations must report progress as the deadline nears, and any maker that misses it will face enforcement under the sales tax law. For buyers, the change should be invisible at the shop counter. For the tax system, it adds another sector where production figures come from machines rather than self-reported returns. The test will be whether the November 30 deadline holds across all nine named firms and the smaller makers still to be identified.
Frequently asked questions
What is the deadline for tyre monitoring?
All registered tyre makers must install and operationalise electronic production monitoring systems by November 30, 2026.
Which order imposes the requirement?
Sales Tax General Order No. 32 of 2026, issued by the Federal Board of Revenue on Friday.
What will the systems record?
They will count each cured tyre, separate real production from dry runs and maintenance, identify tyres by size, tread and weight, and report stoppages or tampering.
Which firms were named first?
Nine firms were named first, including Ghandhara Tyre, Service Long March, Panther Tyres, Diamond Tyres and Service Industries, but the list is not exhaustive.
Why is the FBR doing this?
The board says electronic monitoring helps close a Rs3.7 trillion sales tax gap and forms part of a plan to cover 18 sectors by December 31, 2026.
