The Federal Board of Revenue (FBR) has decided to use its legal powers to monitor sugar production during the upcoming crushing season through video surveillance, video analytics, and digital monitoring software.
The move aims to curb tax evasion by reducing reliance on manual inspections and shifting to technology-driven oversight.
In this regard, the FBR has issued a General Sales Tax Order (STGO), directing sugar mill owners not to remove sugar stock from their factories until the production has been monitored and verified by an Inland Revenue Service officer using digital surveillance tools.
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The order, issued on Wednesday as STGO No. 06 of 2025 titled “Electronic Monitoring of Sugar Bag Production through Video Analytics,” states that under Section 40C(2) of the Sales Tax Act, 1990, the FBR is authorized to implement electronic monitoring or tracking of production from any specified date using digital tools, including video analytics.
The FBR says the initiative is part of broader measures to ensure transparent production reporting, prevent revenue leakages, and strengthen documentation in the sugar sector.
