Pakistan's tax authorities have ordered all packaged milk producers to install electronic production monitoring systems by June 30.
The Federal Board of Revenue (FBR) issued the directive on May 21 to strengthen sales tax enforcement and documentation in the food sector.
The order aims to electronically track production activity in the packaged milk industry and curb tax evasion.
The directive, under Section 40C(2) of the Sales Tax Act, 1990, is part of a broader government push to digitize manufacturing oversight and expand documentation of the economy.
What equipment must milk producers install?
The monitoring system must include industrial barcode scanners, production counting sensors, and industrial computers. It also requires surveillance cameras, network video recorders, and programmable logic controllers across production lines.
Manufacturers must also install production monitoring and information software. Supporting infrastructure includes uninterrupted power supply systems and electrical cabinets.
The monitoring equipment must be supplied, installed, and maintained by vendors authorized by the tax authority.
Why is the FBR monitoring milk production?
The move comes as the government intensifies efforts to improve tax compliance and expand documentation of the economy.
Electronic monitoring of manufacturing aims to reduce tax evasion.
Pakistan's upcoming federal budget is also expected to include stricter enforcement measures. These include mandatory digital invoicing and expanded sales tax coverage on consumer goods.
The measures are linked to commitments under Pakistan's International Monetary Fund (IMF) program to raise revenues and broaden the tax base.
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