Islamabad (Commerce Desk): The Federal Board of Revenue (FBR) has made electronic monitoring of production and product transportation mandatory in the steel sector, directing the relevant manufacturers to activate the monitoring system by December 30.
The order, issued by the FBR under the Sales Tax Act 1990 and the Sales Tax Rules 2006, applies to units that melt scrap to produce billets and ingots, carry out steel rolling or re-rolling, or perform all stages of production, from melting to rolling, at a single location.
Under the new system, four stages of monitoring have been established, covering all activities from counting billets and ingots to dispatching finished steel products. Electronic records of steel production, product sizes, quantities and weights will be mandatory, while all weighbridges must also be connected to the monitoring system.
The FBR will compare estimated production weights with the actual net weights recorded when products are dispatched to identify discrepancies in the records.
According to the order, production and dispatch information will be transmitted to the FBR’s central control unit in real time. The monitoring system will include industrial cameras, video analytics technology, sensors and data-recording devices. At least one month of video footage must also be stored locally.
Monitoring equipment may only be installed by FBR-authorised vendors, who will also be responsible for its maintenance and technical support. Any system malfunction, equipment damage or tampering must be reported to the relevant authorities within one hour. Similarly, the authorities must be notified at least 30 days in advance of any changes to production lines, weighbridges or dispatch procedures.
The FBR has made it clear that steel products cannot be dispatched from business premises without an approved monitoring system. Manual records, private cameras or separate weighbridge entries will not be accepted as substitutes for the mandatory electronic system.
The board has instructed the relevant chief commissioners of Inland Revenue to ensure compliance with the order. Legal action will be taken in accordance with the law if the monitoring system is not installed or activated, or if it is tampered with.
According to the FBR, the order has come into force with immediate effect.