Steel Industry Cannot Hide From FBR Anymore
The Federal Board of Revenue (FBR) has given steel manufacturers until December 30, 2026, to install and activate a digital … Read More The post Steel Industry Cannot Hide From FBR Anymore appeared first on ProPakistani .
Steel manufacturers in Pakistan now face a mandatory digital monitoring system implementation deadline set by the Federal Board of Revenue (FBR). This regulation demands the installation and activation of a comprehensive monitoring system by December 30, 2026, at every factory and active production line across the nation. The order, issued in Sales Tax General Order No. 29 of 2026, applies to registered steel melters, re-rollers, and composite manufacturing units.
The primary purpose of this new system is to monitor steel production, record dispatches, and identify discrepancies between estimated production and actual shipments. The system will track production at various stages, such as billet and ingot counting, product size verification, finished steel classification, and outgoing shipment weighing.
It will also capture essential details like production dates, times, product dimensions, estimated weights, vehicle registration numbers, and gross, tare, and net weights of dispatched goods.
Manufacturers must install industrial cameras, sensors, video analytics equipment, integrated weighbridges, and other necessary hardware and software to comply with the FBR's requirements. The system should support automated counting, alerts, and controls to detect tampering. The authorized vendors for the iron and steel sector are ISSM Labelling Solutions and Obsidian.
Failure to comply with the FBR's new rules can result in penalties under the Sales Tax Act, 1990, and relevant rules. Manufacturers are required to report any system failures, equipment damage, tampering, or inactive production lines to the FBR, the Central Control Unit, and the relevant Commissioner Inland Revenue within an hour.
They must also provide a 30-day advance notice of any changes to products, production lines, weighbridges, or dispatch processes that could impact the monitoring system. FBR field formations will identify operational steel units, coordinate site surveys, supervise installation and testing, and investigate unexplained discrepancies in production and dispatch data.
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