FBR orders packaged milk producers to install electronic monitoring systems by June 30

The Federal Board of Revenue (FBR) has directed all companies involved in the production and packaging of milk to install electronic production monitoring systems by June 30, 2026.

According to an FBR notification, the directive applies to all registered milk producers and toll manufacturers operating in the sector.

The electronic production monitoring system will include both hardware and software and must be supplied, installed and maintained by vendors authorised by the FBR.

The tax authority instructed all relevant companies to complete the necessary arrangements for the installation of the monitoring system within the prescribed deadline.

To facilitate implementation, Chief Commissioners of Inland Revenue have been directed to appoint dedicated focal persons to coordinate with milk manufacturers and authorised vendors.

Under the notification, authorised vendors must ensure that the systems comply with Rule 150ZQT of the Sales Tax Rules, 2006.

The requirements include real-time monitoring of production processes, object detection and object counting, real-time transmission of production data to the FBR’s central control unit, storage and archiving of data, detection of unexpected production stoppages and quantitative production analysis.

The FBR said the directive had been issued with the approval of Member Inland Revenue Operations and would take effect immediately.