ISLAMABAD: The Federal Board of Revenue (FBR) has introduced mandatory electronic production monitoring for registered tea manufacturers, blenders and packers across Pakistan, requiring businesses to install the prescribed systems by December 10, 2026.
The new requirement was announced through Sales Tax General Order (STGO) No. 35 of 2026, issued on November 12. It covers companies involved in retail packaging, including businesses operating through toll and contract packing arrangements.
Under the new rules, manufacturers must install monitoring equipment on every production line. The system will scan individual tea packets after filling and sealing, record their production quantities and transmit the information to the tax authority in real time.
The measure is intended to strengthen production documentation, improve tax compliance and give authorities greater oversight of the packaged tea industry.
The FBR has identified 14 registered businesses in an attached list, including Tapal Tea, Mezan Tea, Islamabad Tea Company, Alpha Tea, Leader Tea, Top Tea Company and Kohistan Foods.
Other names include Quality Products, Noor Tea Co., Ahbaab Impex, DK Products, Kamal Foods, Raaz Industries and Eastern Products.
However, the authority has clarified that the list is not exhaustive. Other registered businesses involved in tea manufacturing, blending or packaging must also follow the new requirements.
The regulations cover black tea, green tea, flavoured varieties, tea bags and instant tea. Tea extracts, concentrates and premixes containing milk powder or sugar, including 3-in-1 products, are also included.
The rules apply regardless of packaging size or format, covering sachets, pouches, cartons, jars, tins, tea-bag boxes and bulk or catering packs.
Another important requirement concerns product identification. Manufacturers must ensure that every distinct product carries a separate, machine-readable barcode.
The barcode must identify the product according to its brand, blend, net weight and packaging type. Acceptable formats include GS1 barcodes, Code 128, QR codes and Data Matrix codes.
The FBR has allowed businesses 15 days from the order’s issuance to introduce compliant barcodes where required. Companies must also register product information, including retail prices, barcode numbers and packaging photographs, with an authorised service provider.
Any newly introduced product or modification to an existing product must be registered at least seven days before packing begins.
The tax authority has approved four companies to provide electronic production monitoring services. These include Excellence Delivered (ExD) Private Limited, National Radio and Telecommunication Corporation (NRTC), Tollink Pakistan and AJCL.
Their systems will use barcode scanners, counting sensors and monitoring equipment to record production activity. They must also identify unusual stoppages, barcode mismatches, equipment failures and possible attempts to interfere with the monitoring process.
Businesses operating manual packing facilities will not be exempt. They must establish designated scanning points or conveyors to ensure that every retail packet is counted before leaving the premises.
The new directive also places responsibility on manufacturers to arrange electricity, internet connectivity, hardware and other technical facilities required for the system. Applicable monitoring fees and charges must also be paid.
Under the order, packaged tea cannot be removed from business premises unless its production has been electronically monitored in accordance with the relevant sales tax rules.
The FBR has instructed Chief Commissioners Inland Revenue to appoint dedicated officers to coordinate with businesses and authorised vendors. These officials will oversee implementation and ensure that all eligible manufacturers and packers are brought under the monitoring system.
The move forms part of the government’s wider efforts to digitise industrial production and improve tax collection. According to reported estimates, Pakistan faces a sales tax collection gap exceeding Rs3 trillion.
In other news read more about: FBR Introduces New Automated System To Check Income Tax Returns
The new order took immediate effect on November 12. All covered businesses must complete the installation, integration and activation of their monitoring systems by December 10, 2026.
