Federal Board of Revenue has issued new directives requiring all registered textile spinning units across Pakistan to install video analytics systems for monitoring the processing of cotton bales commonly referred to as Gol Mall. The order was issued through Sales Tax General Order 8 of 2025, which invokes Section 40C subsection 2 of the Sales Tax Act 1990 and relevant rules under Chapter XIV BA of the Sales Tax Rules 2006. Through this notification, textile spinners are now obligated to deploy digital monitoring infrastructure that combines video surveillance with automated analytics to ensure transparency in the documented movement and processing of cotton bales.
Federal Board of Revenue has stated that the system must be installed at production lines, blendomats, and auto plucker machines. These monitoring points are considered critical locations where the processing of cotton bales takes place and where instances of undocumented material have been previously detected. Vendors approved by the Board will be responsible for supplying the required hardware and software and for ensuring that the deployed solution meets the technical standards laid out in the rules. The authority has stressed that this transition toward electronic oversight is mandatory for every registered person engaged in textile spinning, and the measure is intended to increase visibility in production processes where Gol Mall practices have historically occurred.
The directive sets December 31, 2025 as the deadline for all textile spinning units to complete the installation and activation of the required video analytics solution. This includes the placement of cameras and associated monitoring hardware as well as the software used to generate real time production analytics. Federal Board of Revenue has instructed Chief Commissioners to appoint dedicated focal persons who will coordinate with spinning units and authorized vendors. Their responsibility is to support timely implementation, address technical constraints, and maintain communication between manufacturers and system providers. The notification emphasizes that compliance is a legal requirement and that units must achieve full operational readiness before the stated deadline.
Field formations have also been instructed to focus on high risk spinning units where the likelihood of undocumented cotton bale usage is greater. Federal Board of Revenue has shared a jurisdiction wise non exhaustive list of registered textile spinning units that fall under the monitoring initiative. The authority expects this technology driven approach to strengthen production reporting and reduce gaps that previously enabled undocumented bale movement. With digital visibility replacing manual oversight, spinning units will need to align their operations with the new monitoring requirements and coordinate actively with assigned focal persons and vendors to ensure uninterrupted installation and smooth integration of the mandated system.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
