FBR issues notices to 421 textile spinning units over failure to install digital monitoring system

The Federal Board of Revenue (FBR) has issued notices to 421 textile spinning units for allegedly failing to install a production monitoring system, including video analytics or “digital eye” systems, at their factories, Business Recorder reported, citing sources.

Notices were issued to all non-compliant textile spinning units on Friday as the FBR moves to electronically monitor production at registered spinning units.

Out of the 421 units, 12 have engaged vendors for the installation of the system. Six textile spinning units have already implemented production monitoring systems, while another six are in the process of implementation.

Sources said the FBR has decided to proceed with full enforcement for implementation of video monitoring and video analytics systems in the spinning sector.

The tax authority is also expected to stop imports of non-compliant textile spinning units through the green channel facility and block their refunds.

All field formations of the FBR have been directed to take enforcement action against units that refuse to install the monitoring system.

The measures may include import embargoes, penalties, sealing of business premises, suspension of sales tax registration, blacklisting and non-clearance from production premises.

Sources said units showing resistance may also face penalty or suspension proceedings.