Key Takeaways
- The Federal Board of Revenue (FBR) has ordered all textile spinning units to install video surveillance cameras.
- The new directive covers the processing of loose and non-bale forms of fiber, including cotton and polyester.
- Cameras must be installed at key points across textile spinning operations and must be integrated with video analytics systems.
The Federal Board of Revenue (FBR) has mandated that all registered textile spinning units must install video surveillance cameras by November 15, 2026. This directive, detailed in Sales Tax General Order No. 30 of 2026, issued on Monday, aims to enhance the monitoring of fiber processing.
According to the FBR, the new requirements expand upon an earlier order issued on November 20, 2025, and now cover loose, opened, and other non-bale forms of fiber, including cotton, polyester, viscose, wool, and acrylic. These measures are intended to ensure compliance with tax regulations and improve transparency in the textile industry.
The order specifies that cameras must be installed at critical points in textile spinning operations, such as hopper bale openers, hopper feeders, weighing hopper feeders, and blending feeders. Additionally, cameras are required on blow room lines dedicated to man-made fibers, as well as acrylic processing lines. Other areas that must be monitored include waste openers, recycling lines, and mixing or laydown areas where loose fibers are stacked or mixed.
The FBR has also directed vendors authorized under Chapter XIV BA of the Sales Tax Rules, 2006, to ensure their video analytics systems are integrated with the installed cameras. These systems must be capable of detecting, counting, and quantifying fibers fed into production in loose, open, or other non-bale forms. The systems must capture production processes in real time, collect production data through object detection and counting, and transmit data to the FBR’s Central Control Unit in real time.
Furthermore, the systems must store and archive data, detect unexpected production stoppages, analyze production quantities, and support data analysis for required legal action. The FBR issued the new order under Section 40C(2) of the Sales Tax Act, 1990, and Rules 150ZQR and 150ZQT of the Sales Tax Rules, 2006. The board stated that Sales Tax General Order No. 08 of 2025, dated November 20, 2025, will remain in force, adding monitoring requirements for loose, opened, and other non-bale fiber processing to the existing system for monitoring cotton bales.
The FBR’s directive underscores the importance of maintaining accurate records and ensuring compliance with tax regulations in the textile industry. The new measures are expected to enhance transparency and accountability in fiber processing, thereby supporting the broader goals of tax collection and economic oversight.
