FBR sets deadline for steel production monitoring

Steel melters, re-rollers and composite units must electronically monitor production and dispatches; FBR prohibits removal or supply of goods without approved monitoring The Federal Board of Revenue (FBR) has directed all registered steel manufacturers to install and operationalise electronic production monitoring systems at their manufacturing facilities and active production lines by December 30, 2026. Through Sales Tax General Order (STGO) No. 29 of 2026 , issued on Wednesday, the FBR made the system mandatory for steel melters, re-rollers and composite manufacturing units under the Sales Tax Act, 1990, and Sales Tax Rules, 2006. The directive covers manufacturers producing billets, ingots and primary steel products, as well as units converting semi-finished steel into bars, rods, reinforcing bars and other finished products. Under the prescribed mechanism, the system will electronically track production through product identification, counting, dimension verification and weight measurement, while dispatches will be recorded through integrated weighbridges. It will capture production volumes, estimated weights, vehicle registration numbers and dispatch details, allowing the FBR to reconcile recorded production with actual shipments and identify discrepancies. Manufacturers must install the equipment through FBR-authorised vendors, including M/s ISSM Labelling Solutions and M/s Obsidian, and ensure uninterrupted operation and secure transmission of data to the FBR's Central Control Unit. The order requires manufacturers to report system failures, damage or tampering within one hour and provide 30 days' advance notice of changes affecting production lines or dispatch arrangements. The FBR has prohibited the removal or supply of specified steel products unless their production and dispatches have been recorded through the approved monitoring system. Manual records, private cameras and standalone weighbridge entries will not be accepted as substitutes. Chief Commissioners Inland Revenue have been directed to identify operational steel units, oversee installation and monitor compliance. The FBR warned that failure to install or operate the system, unauthorised removal of goods, concealment of production facilities or tampering with equipment would result in action under the Sales Tax Act, 1990, and relevant rules.