The FBR has made the digital monitoring system mandatory for businesses
Published 8 days ago | By Nouman Shakeel
The Federal Board of Revenue (FBR) has introduced significant amendments to the Sales Tax Rules 2006, mandating that relevant businesses install production monitoring, video surveillance, or digital monitoring systems.
According to the FBR, action may be taken against registered businesses that fail to link their prescribed monitoring systems with the FBR's network. Police assistance may also be sought to seal such business premises if necessary.
Procedure for Sealing Business Premises
The notification outlines a formal procedure for sealing business premises. Under this procedure, an officer holding the rank of Assistant Commissioner or higher must submit a written report to the Commissioner of Inland Revenue.
Upon receiving the report, the Commissioner will conduct an inquiry and forward their findings to the Chief Commissioner. Subsequently, the Chief Commissioner will issue a written order regarding whether to seal the premises or refrain from taking action.
Business premises may be sealed either entirely or in part; however, the business owner must be provided with a copy of the sealing order prior to the action being taken.
Seal Remains Until FBR Connectivity is Established
Under the new rules, sealed premises will not be reopened until the relevant monitoring system is successfully linked to the FBR's system.
To reopen a sealed business, the owner must pay a fine and install the required monitoring system. An FBR technical team will be present on-site during the system's installation.
Once the system is successfully installed, the relevant Commissioner is required to issue a certificate within three days.
Additional businesses may also fall within the scope
According to the FBR notification, these regulations regarding electronic monitoring could be extended to include more business entities and manufacturers in the future.
Under the new amendment, maintaining a connection between the digital system used for monitoring business activities and the FBR’s central system has been made a mandatory requirement.
