PM orders full production monitoring by Dec 31 to stop tax theft
ISLAMABAD (Agencies): Prime Minister Muhammad Shehbaz Sharif has directed that the Production Monitoring System under faceless taxation regime be made fully operational in all manufacturing sectors by December 31, 2026 to ensure sales tax collection and prevent theft.
Chairing a review meeting on Federal Board of Revenue (FBR) reforms in Islamabad on Monday, the Prime Minister said production monitoring through cameras is being made more effective and all hurdles in installation of an automated monitoring system should be removed immediately.
He said businesses that collect tax from consumers and pocket it instead of depositing it in the national exchequer deserve no leniency. He said the government will take all necessary measures to achieve full tax potential and ensure implementation of tax laws.
According to PM Office Media Wing, the Prime Minister appreciated businesses that are voluntarily installing the Production Monitoring System.
The meeting was informed that the system has been fully installed in sugar, cement, tobacco, tiles and fertilizer sectors, while installation is underway in textile, packaged water, juice and milk sectors for which equipment procurement has been completed.
It was further informed that procurement for steel, poultry and tyres sectors will be completed by October 15, while procurement for tea, home electronics, leather, paper & board and oil & ghee sectors will be completed by October 30. The target is to make the system fully functional in all these sectors by December 31.
The Prime Minister was told that some textile industries have resisted installation, however Nishat Mills, Al-Karam Textile, Al-Karam Cotton Mills, JK Spinning Mills, Soorti Enterprises, Interloop Limited, Faisal Spinning Mills, Ibrahim Fibers Limited, Sapphire Textiles Limited and Nishat Chunian have voluntarily installed the system. The PM lauded their cooperation.
He also appreciated the audit report of the Production Monitoring System in the cement sector and directed the Ministry of Information Technology to audit the system in other sectors to evaluate its effectiveness.
A comprehensive report on the gap between the country’s tax potential and actual collection was also presented. It said due to government measures and enforcement, additional Rs1.3 trillion tax was collected during the last three years, equal to 40 percent increase.
The PM appreciated the FBR Transformation Team for preparing assessment of tax potential and identifying revenue increase prospects and awarded shields to officials.
The meeting was attended by federal ministers Azam Nazeer Tarar, Dr Musadik Malik, Ahad Khan Cheema and Shaza Fatima Khawaja, Minister of State Bilal Azhar Kayani, PM’s Adviser Haroon Akhtar and senior officials.