Cigarette Factories Ordered to Install Network Security Cameras as FBR Tightens MonitoringCigarette Factories Ordered to Install Network Security Cameras as FBR Tightens Monitoring
The Federal Board of Revenue has ordered all tobacco manufacturing units to install IP-based CCTV cameras at designated points inside their factories to ensure real-time monitoring of cigarette production.
The directive is part of the government’s wider effort to curb tax evasion and illicit trade in the tobacco sector.
According to a new notification, Sales Tax General Order No. 7 of 2025, the FBR has exercised its authority under Section 40C of the Sales Tax Act, 1990, and related chapters of the Sales Tax Rules, 2006.
The order requires that no tobacco manufacturer may remove finished goods from factory premises unless the production process has been recorded and monitored through IP-CCTV systems.
The decision, approved by the Member Inland Revenue (Operations), was issued from FBR headquarters in Islamabad and takes effect immediately. Officials said the move aims to improve transparency in production reporting and strengthen the audit trail of excise and sales tax payments.
The FBR had earlier communicated to tobacco manufacturers about installing surveillance equipment under the same legal provisions, but compliance remained uneven.
The latest order makes camera monitoring a mandatory prerequisite for production clearance, ensuring that every cigarette pack leaving the factory floor is traceable.
The directive is expected to tighten oversight of an industry that contributes billions in taxes but has long struggled with underreporting and counterfeit production.
Enforcement teams have been instructed to verify the installation and functionality of the camera systems in coordination with Inland Revenue operations
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