Islamabad: Pakistan’s tax authority has issued a stern warning to Chinese tile manufacturers operating in the country, demanding full disclosure of production figures or the immediate cessation of operations. The warning comes after representatives of four Chinese firms appeared before the Senate Standing Committee on Finance, resisting the installation of monitoring cameras at their factories.
Federal Board of Revenue (FBR) Chairman Rashid Langrial said the government estimates Rs30 billion in annual tax evasion by tile manufacturers and is determined to curb it through Artificial Intelligence-enabled cameras. If your board of directors does not agree to install the cameras, then you should stop work, Langrial warned, accusing the firms of deliberately underreporting production.
The FBR has already reduced the number of cameras per factory from 16 to five, placing them only where production output can be accurately monitored. Langrial rejected claims by the companies that camera installation would compromise trade secrets. The devices will capture only production counts, not sensitive operational details, he said.
State Minister for Finance Bilal Azhar Kayani defended the measure, noting that AI monitoring eliminates the need for physical presence of tax officials. The real issue is accurate counting of goods to ensure full sales tax is paid, he said, adding that weekly meetings with industry are held to address investors’ concerns.
The Chinese firms argued that similar operations in Saudi Arabia and other countries do not face such monitoring, and criticized the government for sudden policy changes without prior consultation. Langrial responded that the decision followed complaints from the Pakistan Tiles Manufacturers Association about widespread underreporting, citing successful revenue generation in other sectors like sugar and cement after camera installation, which is projected to add Rs76 billion and Rs102 billion, respectively, to the exchequer this year.
Committee Takes Up Women’s Dress Code Concerns
The Senate panel also addressed complaints about certain commercial banks enforcing a strict dress code on female employees, requiring them to wear abayas. Senator Dr Zarqa Taimur and Senator Farooq Naek condemned the practice, calling it unnecessary and discriminatory. The committee decided to summon the banks for an explanation and expressed concern over higher profit rates charged by Islamic banks under the guise of Sharia compliance, labeling it fraud and deception.
The committee, chaired by PPP Senator Saleem Mandviwalla, underscored the government’s dual focus on revenue integrity and protection of employees’ rights, signalling zero tolerance for tax evasion and workplace discrimination alike.