Pakistan orders tyre makers to count every cured tyre for the FBR

Pakistan orders tyre makers to count every cured tyre for the FBR

30 October 2026: Pakistan's Federal Board of Revenue has ordered every registered tyre manufacturer to install an electronic production monitoring system at each curing press and finishing line by 30 November 2026, through a vendor the Board has authorised. Sales Tax General Order No. 32 of 2026, issued in Islamabad on 30 October, came into force at once, and only one vendor is authorised so far.

Not yet independently verified. This rests on the FBR order alone. It does not state the fee manufacturers pay under rule 150ZQZD or any penalty for missing 30 November, and we have found no second report. We will update this when it can be confirmed, and remove this note.

What the system has to see

The order is precise about what counts as production. Hardware and software at the curing press and at the takeaway conveyor or finishing line must "count each cured tyre, distinguish valid production cycles from dry, maintenance and warm-up cycles and green (uncured) tyres", and identify each tyre's stock keeping unit by diameter, width, tread design or pattern and weight against approved SKU master data.

Vendors' solutions must also meet the technical specification in Section V of the Board's Stage 2 request for proposal. The order lists what that covers:

• real-time capture of production events and secure, real-time transmission to the Board's Central Control Unit, with storage and archiving;
• detection and reporting of unexpected stops, tampering, equipment failure, interruption or bypass;
• audit logs and traceability of system events;
• dashboards, reports and data for reconciliation and enforcement under the Sales Tax Act, 1990.

One vendor, and no tyres out of the gate

The Board's Order of Authorization No. 1(7)/IR/TDU/2026, dated the same day, names a single authorised vendor for the sector: ISSM Labelling Solutions (Pvt) Ltd. Every manufacturer therefore has a month to contract, install and integrate with one supplier, which also has to serve every other factory on the list at once.

The order leaves no room to keep shipping while that happens. Under rule 150ZQT(2) of the Sales Tax Rules, 2006, no tyre manufacturer may remove tyres from its premises unless production has been monitored under Chapter XIV-BA. Manufacturers must provide access, IT infrastructure, connectivity and power under rule 150ZQZE and pay the fee and charges set under rule 150ZQZD, which the order does not quantify.

Nine named factories, and the rest

Annex A lists nine registered manufacturers as a non-exhaustive starting point: Ghandhara Tyre and Rubber Company (LTO Karachi); Service Long March Tyres, Service Tyres, Panther Tyres, Diamond Tyres, Service Industries and Ghauri Tyre & Tube (LTO Lahore); Crown Tyres (LTO Multan); and United Rubber (RTO Peshawar). The order says the list does not limit who is covered, and tax offices are told to find and enrol any manufacturer missing from it. Chief Commissioners will name focal persons to work with the manufacturers and the vendor and report progress to the Board.

The same regime, sector by sector

Tyres are the latest sector to be brought under Chapter XIV-BA. Eight days earlier the Board ordered spinning mills to stream production data to it by 15 November under Sales Tax General Order 30 of 2026, with the same pattern of authorised vendors and real-time feeds to the Central Control Unit. Manufacturers in sectors not yet named can expect the same specification when their turn comes. Our manufacturing software category lists nine products; none is an FBR-authorised monitoring vendor.

Sources

• Federal Board of Revenue: Sales Tax General Order No. 32 of 2026, IR Operations, electronic monitoring of production in the tyre sector (PDF), 30 October 2026