FBR orders electronic production monitoring for tyre makers

The Federal Board of Revenue (FBR) has ordered every registered tyre manufacturer to install an electronic production monitoring system by 30 November 2026. Sales Tax General Order 32 of 2026, dated 30 October 2026, took effect at once. It applies to tyre factories and says nothing about tyre prices.

What the order requires

Each manufacturer must put monitoring hardware and software at the curing press and at the takeaway conveyor or finishing line of every facility. The system has four jobs:

• Count each cured tyre, separately from dry, maintenance and warm-up cycles and from green (uncured) tyres.
• Identify each tyre's stock keeping unit by diameter, width, tread pattern and weight, against approved master data.
• Send production data to the Board's central control system in real time.
• Detect and report tampering, bypass and unexpected stops.

The systems come from vendors the Board authorises. The order names one, ISSM Labelling Solutions (Pvt) Ltd, authorised by an order dated 30 October 2026.

Legal basis and effect

The order is issued under section 40C(2) of the Sales Tax Act, 1990, read with rules 150ZQR and 150ZQT of the Sales Tax Rules, 2006. Under rule 150ZQT(2), a manufacturer may not take tyres out of its premises unless the production has been monitored. Each manufacturer provides access, IT infrastructure, connectivity and power, and pays the fee set under the rules.

The order annexes a list of registered manufacturers by jurisdiction, and says the list is not exhaustive. Any other registered tyre maker is covered as well.

What it means for car owners

Tyres are a running cost of every car, but this order is about tax monitoring inside factories. It states no change to tyre prices or to sales tax rates. For the costs that move every few days, see the petrol price today.

What is not yet known

• The fee to be paid by manufacturers was not stated in the order.
• The order itself names no penalty for missing the 30 November deadline.
• No reports so far say how many factories are ready to meet the date.