The Federal Board of Revenue (FBR) has instructed all registered tyre manufacturers in Pakistan to fit electronic production monitoring systems by November 30, with real-time output recording and data transmission to tax authorities.
The order, released through Sales Tax General Order (STGO) No. 32 of 2026 on Friday, brings the tyre sector into the FBR's electronic monitoring framework, part of an effort to tackle a sales-tax gap estimated at Rs. 3.7 trillion.
Several other industries are already covered, such as packaged tea, household electronics, paper and paperboard, edible oil and ghee, leather, textile spinning, tiles, packaged milk, juices, bottled water and aerated beverages.
FBR Sets Production Monitoring Requirements
Under the new rules, manufacturers must install the required hardware and software on each curing press and takeaway conveyor or finishing line to capture production electronically.
The system will count every cured tyre, separating genuine output from dry runs, maintenance and warm-up cycles, while also spotting uncured tyres and classifying finished products using approved SKU data that includes tyre diameter, width, tread design or pattern, and weight.
ISSM Labelling Solutions (Pvt) Ltd has been authorised by the FBR to supply the electronic monitoring systems. The provider must ensure that production events are logged in real time and securely sent to the FBR's central control system.
The equipment must also detect and report unexpected stoppages, machine failures, tampering, interruptions and any attempts to bypass the monitoring devices.
Tyres Cannot Be Removed Without Electronic Monitoring
The monitoring system will keep audit logs, produce production reports and analytical data to aid reconciliation and enforcement under sales-tax law. Registered manufacturers will be barred from taking tyres off their premises unless the products have passed through the prescribed electronic monitoring.
Manufacturers must also provide the necessary IT infrastructure, connectivity and electricity, ensure access to the monitoring gear, and pay any applicable fees and charges.
Nine Tyre Manufacturers Identified for Initial Rollout
The FBR has initially listed nine registered manufacturers for the rollout: 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.
However, the tax authority clarified that the list is not exhaustive; all other registered tyre producers will also have to comply with the monitoring regime.
Chief commissioners of Inland Revenue have been instructed to appoint dedicated focal persons to work with manufacturers, the authorised vendor and the FBR to ensure timely installation and operation.
Field formations have also been ordered to locate manufacturers missing from the initial list, add them to the system and submit progress reports to the FBR, as per the STGO.
