A. Background: This refers to TLQCs in trail, blue, italic and after double line (1) 3241 of 17.8.25 about Updated FST Rules 2006 - FBR Version including FST Rules 150 ZQR and 150 ZQT of Chapter XIV-BA (2) 3509 of 9.5.26 about Serious Policy issue, as favor Importers rather than Manufacturer & KCV (2) For List of other relevant QCs, please refer to Para D.

B. Kasbati & Co Recommendations

1. We reiterate that your Entity Tax Team Development in necessary to take care Electronic Monitoring your Sector shortly plus (as we predicted, now more expected for more Sectors, so be ready) even Otherwise Notice as Govt could not achieve Target plus next year increased Target to Rs 17 Trillion: Due to matters in para C read with para D and Target achieving Efforts plus 2026-27 target of Rs 17 Trillions for Tax and Huge Penalties via SECP & SBP, we recommend your team members to attend the Courses for Tax, etc Savings, Compliance, etc Education, Knowledge & Experience. These courses can be attended Physically at Karachi; Online from Karachi Lahore, Islamabad, etc and Recorded Lecture are also available. Click here for the Main Tax Flyer. Specific Level as per the following Courses, click Flyers and Tentative Registration Links. Please click on the Link for (a) Comparative Study to decide relevant Level by Mr Asif Kasbati FCA, FCMA, LLB and Courses Director (b) View of High Level Professionals view (c) Participants views 

2. High Levels Tax Professionals to remain updated: Suggest Friends & Contacts to get Daily News Clipping, Updates & High Quality Commentary Subscriber in order to get this type of Quality emails, as per suggested by several High Level Professionals and current Subscribers.  For Flyer, click here. For video as to the details about services, please click Link. For Comments by High Level Professionals & Subscribers views, please click here. For 15 days FREE Samples as Trial, please fill Form, if not filled earlier. 

3. Multiplication: Although all the Commentaries are to the extent of the Subscribed IDs only, however, your Goodself is allowed to share this QC to Impart Knowledge to the maximum Employees, Relatives, Groups, etc as soon as possible, as they may get Notice anytime.

C. Updated Commentary about Real Time Digital Surveillance of Milk, Steel, Oil & Ghee

1. Further to KQU 3919 of 21.5.26, being an important matter, we would inform you about SRO 880(I)/2026 -  of 20.5.26 regarding Electronically Monitoring of of milk,  Steel, Oil & Ghee Production of Registered Persons (Attachment 3540.1) in ensuing paragraph, with emphasis ours in bold & Underline for quick reading, with matter in bracket & Italics & Bold ours.

2. The FBR has expanded its digital tax monitoring system to production lines of packaged milk, iron and steel, edible oil and ghee manufacturers with immediate effect i.e. from 20.5.26 (KC Views: Immediate effect is unfair).

3. The tax authority issued SRO 880 of 20.5.26, directing electronic monitoring of production activities under Rule 150ZQR of Chapter XIV-BA of the FST Rules, 2006.

4. According to the notification, registered manufacturers (KC Views: FBR is recommended to focus on Broadening of FST Base as only about 180K  in FST ATL while compared to income tax return ATL at over 7 million) engaged in the production of packaged milk, iron and steel products, oil and ghee will now be subject to real-time digital monitoring through video surveillance and analytics systems.

5. The FBR said the monitoring mechanism would use video surveillance, video analytics solutions and “digital eye” technology to electronically monitor production processes on a real-time basis.

6. Under FST Rule 150ZQR, the system applies to goods listed in the Third Schedule, as well as any additional products specifically notified by the board.

7. The rule further allows the FBR to determine the implementation date for monitoring specified goods through separate notifications.

8. Officials said the move is part of broader efforts to strengthen tax compliance, improve transparency in industrial production, and curb underreporting and tax evasion in key manufacturing sectors.

9. The FBR has increasingly adopted technology-based enforcement measures in recent years, including digital invoicing, track-and-trace systems, and real-time monitoring of production facilities.

10. Industry experts said the latest expansion could improve revenue collection from high-volume sectors but may also raise compliance and operational costs for manufacturers.

11. Pakistan’s tax authorities are under pressure (KC: from IMF) to improve revenue generation as the country seeks to meet fiscal targets under its economic reform programmed.

D. List of other relevant TLQCs

(a) 3525 of 20.5.26 about Electronic Monitoring of Bottled Water Production per STGO 3 & KC Recommendations about your Industry

(b) 3374 of 4.12.25 about Electronic Monitoring of Cotton Bale Production - STGO 8

(c) 3018 of 27.1.25 about FST Rules regarding Returns filing with More Production Data and New Stock Statement & KC Views

(d) 2914 of 1.10.24 about ST Rules for Refund Procedures amended vide SRO 1507 and Updated FST Rules

(e) 2854 of 30.7.24 about Track & Trace system for Cotton & Ginning industry

(f) 2194 of 6.2.23 about IR Officers to Monitor Sugar Mills, Etc for FST

E. Further Details & Services

Should you require any clarification or explanations in respect of the above or otherwise, or require Income Tax, Federal & Provincial Sales Tax or Withholding Tax Statement, Advisory, Return Filing or Review services, please feel free to email Mr Sirhan at sirhan@786tax.com Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com, asif.s.kasbati@professional-excellence.com.