Pakistan Orders 9 Tyre Manufacturers to Install Digital Monitoring by Nov 30
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Pakistan’s Federal Board of Revenue ordered registered tyre manufacturers on Friday to install electronic production monitoring systems by Nov 30, linking factory machinery directly to state revenue servers to track output in real time.
The mandate aims to help bridge a national sales tax gap estimated at Rs3.7 trillion between current collections and actual revenue potential.
Under Sales Tax General Order No. 32 of 2026, initial compliance targets nine companies: Ghandhara Tyre and Rubber Company Ltd, Service Long March Tyres Ltd, Service Tyres (Private) Ltd, Panther Tyres Ltd, Diamond Tyres Ltd, Service Industries Ltd, Ghauri Tyre and Tube (Pvt) Ltd, Crown Tyres Ltd, and United Rubber (Pvt) Ltd. Tyre makers must fit approved tracking hardware and software across every curing press, takeaway conveyor, and finishing line. The equipment counts cured tyres, screens out uncured units, and separates genuine production runs from maintenance, warm-ups, and dry runs. It records each product by diameter, width, tread design, and weight using certified stock keeping unit data.
Single Vendor System and Factory Rules
The Federal Board of Revenue selected ISSM Labelling Solutions (Pvt) Ltd as the sole authorised provider to install and run the tracking platform across plants. The system streams production events directly into the central tax control room, automatically flagging unexpected stoppages, machinery breakdowns, interruptions, and any physical or software tampering.
Manufacturers cannot transport finished tyres off factory grounds unless the output passes through the electronic inspection network. Companies must supply the underlying information technology infrastructure, reliable power, and network connectivity at their own cost, while also paying service fees to the authorised vendor.
“Tax officials noted the list is not final and will expand to every licensed producer in the country.”
Initial Hit List for Industrial Compliance
Regulators singled out nine major tyre producers for the initial rollout: Ghandhara Tyre and Rubber Company Ltd, Service Long March Tyres Ltd, Service Tyres (Private) Ltd, Panther Tyres Ltd, Diamond Tyres Ltd, Service Industries Ltd, Ghauri Tyre and Tube (Pvt) Ltd, Crown Tyres Ltd, and United Rubber (Pvt) Ltd. Tax officials noted the list is not final and will expand to every licensed producer in the country.
For supply chain operators and vehicle assembly partners across South Asia, the measure removes unrecorded factory off-takes that frequently leak into local wholesale distribution. Tyre suppliers operating in Pakistan face immediate capital outlays for hardware integration, alongside tighter inventory audits that leave zero room for off-the-books stock.
The policy tilts the operating balance toward fully documented parts suppliers while forcing mid-tier producers to absorb compliance costs. Distributors and replacement retailers buying from these plants will see tighter paper trails on all commercial invoices, shrinking informal discounting across aftermarket supply routes.
Expanding Digital Tax Control
The tyre sector is the latest consumer goods segment brought under automated plant surveillance. Tax authorities previously placed packaged tea, household electronics, paper and paperboard, edible oils, leather, textile spinning, tiles, packaged milk, fruit juices, bottled water, and carbonated beverages under similar digital recording orders.
Inland Revenue chief commissioners are now appointing dedicated regional focal persons to inspect factory lines and monitor vendor installations alongside company managers. Regional field formations hold orders to add unlisted tyre factories to the registry and submit formal compliance reports to headquarters.
Questions & Answers
Q.Why has the government introduced mandatory digital monitoring for tyre factories?
Why has the government introduced mandatory digital monitoring for tyre factories?
The Federal Board of Revenue introduced the electronic tracking system to help bridge an estimated national sales tax gap of Rs3.7 trillion. The system prevents unrecorded factory production from leaking into local wholesale distribution by streaming real-time output data directly to state revenue servers.
Q.Who is responsible for covering the costs of installing and operating the monitoring systems?
Who is responsible for covering the costs of installing and operating the monitoring systems?
Tyre manufacturers must pay for the required information technology infrastructure, reliable power supply, and network connectivity at their own facilities. Also, the companies are required to pay ongoing service fees directly to the state-appointed sole vendor, ISSM Labelling Solutions.
Q.What specific production data does the tracking equipment capture?
What specific production data does the tracking equipment capture?
The equipment records each tyre by diameter, width, tread design, and weight using certified stock keeping unit data across curing presses, conveyors, and finishing lines. It also counts cured units, filters out uncured tyres, and separates genuine production runs from maintenance, warm-ups, and dry runs.
Q.What operational restrictions apply to tyre producers once the monitoring system is installed?
What operational restrictions apply to tyre producers once the monitoring system is installed?
Manufacturers cannot transport finished tyres off factory premises unless the goods pass through the electronic inspection network. The automated platform continuously monitors operations, flagging any unexpected stoppages, interruptions, machinery breakdowns, or physical and software tampering directly to the central tax authority.
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