FBR Orders Tea Production Monitoring by December 10
The Federal Board of Revenue has ordered tea production monitoring for makers and packers, who must install electronic systems by December 10, 2026, so that every retail pack is recorded before it leaves the factory.
The directive was issued on Thursday under Sales Tax General Order No. 35 of 2026. It covers all registered makers, blenders and packers of packaged tea, including toll and contract packers. Dawn reported the order on Friday.
The order covers black tea, green tea, flavoured tea, tea bags, instant tea, tea extracts and premixes that contain milk powder or sugar. It applies to tea in every retail format, from sachets and pouches to cartons, jars, tins and bulk packs.
How the tea production monitoring will work
Makers must fit barcode scanners, counting sensors and other monitoring equipment on every packing line. The system will read each barcode, count the pack, and send the count to the FBR in real time against approved product data.
The FBR has given makers 15 days from the date of the order to make sure every product carries a unique, machine-readable barcode. The full system must be installed and working by December 10.
The board has named 14 registered makers and packers for the first phase. They include Tapal Tea, Mezan Tea, Islamabad Tea Company, Alpha Tea, Leader Tea, Top Tea Company, Kohistan Foods, Quality Products, Noor Tea Co., Ahbaab Impex, DK Products, Kamal Foods, Raaz Industries and Eastern Products.
Four companies have been authorised to supply the monitoring systems: Excellence Delivered, the National Radio and Telecommunication Corporation, Tollink Pakistan and AJCL. Chief Commissioners Inland Revenue will name focal persons to coordinate the work with makers, vendors and the tax authority.
Why the FBR is moving on tea
The step is part of a wider drive to close a sales tax gap of more than Rs3 trillion between what the FBR collects and what it could collect. Electronic monitoring is meant to stop under-reporting of production, which is one of the main ways tax is lost in manufacturing.
Tea is the latest sector to come under the system. The Prime Minister directed the FBR in October to finish digital monitoring of production in major industries by the end of December 2026. The system is already fully installed in sugar, cement, tobacco, tiles and fertiliser. Work is under way in textiles, packaged water, packaged juice and packaged milk, and equipment for steel, poultry and tyres was due by October 15.
The order does not change the sales tax rate on tea or any retail price. Its purpose is to record what is made, not to tax shoppers more.
For tea drinkers, the change should pass unnoticed. Pakistan runs on tea, and a barcode on a pack changes nothing at the shop counter. For the FBR, the gain is a live count of production in a sector where the true output has been hard to pin down. The tax authority is also tightening reporting in other areas, including cash transactions above Rs3 million. The government has extended a subsidy on Raast QR payments for traders. The first-quarter budget surplus gives the government room to press ahead with the drive. Pakistan Single Window is bringing the same digital checks to export trade.
Frequently asked questions
What must tea makers do by December 10?
Install and run an electronic production monitoring system on every packing line, so each retail pack is counted and reported to the FBR in real time.
Which teas does the order cover?
Black, green and flavoured tea, tea bags, instant tea, tea extracts and premixes with milk powder or sugar, in all retail pack sizes.
What is the barcode deadline?
Makers have 15 days from the order to put a unique, machine-readable barcode on every product.
Which companies are named?
Fourteen makers and packers, including Tapal Tea, Mezan Tea, Islamabad Tea Company, Alpha Tea and Leader Tea.
Will tea prices rise?
No. The order does not change the sales tax rate on tea or any retail price.
