Pakistan’s Federal Board of Revenue (FBR) directed all tobacco manufacturing units to install IP-based CCTV cameras at designated points in factories and green leaf threshing stations to monitor production and reduce tax evasion, according to Sales Tax General Order No. 7 of 2025. The move requires that finished goods cannot leave factory premises unless the production process is fully recorded and monitored in real time. The measure applies to both local and multinational manufacturers and covers all stages from green leaf processing to cigarette production.
The FBR collects 18% sales tax and federal excise duty on domestic cigarette sales, ranking the sector among the top revenue generators. Authorities believe current collections fall short of potential, estimating that proper monitoring could increase revenues to approximately Rs600 billion ($2.1 billion).
