FBR revises up VAS installation deadline till January 15

KARACHI: The Federal Board of Revenue (FBR) on Friday directed sugar mills to install video surveillance cameras by January 15 to avoid penal action. Earlier, the sugar mills were required to make compliance by December 31, 2020.

The FBR in a notification extended the compliance date by 15 days for sugar companies to install the video analytics system (VAS). The revenue body said it had received requests from Pakistan Sugar Mills Association members as well as pre-qualified vendors to extend the deadline as the task could not be accomplished mainly due to the ongoing COVID-19 situation.

The FBR further said the sugar mills are now required to send final notice to authorised vendors for submitting their quotation for installation of VAS to the mills.

“In case of non-receipt of quotation from vendors by January 8, 2021, the same shall be treated as regret from the vendor. The sugar mills are further required to select one out of all those quotations that meets the FBR’s requirements as per SRO 889(I)/2020 issued on September 21, 2020,” the FBR added.

The FBR said the sugar mill needs to issue a work order to the finally selected vendor. Meanwhile, the vendor is required to install the VA system in the sugar mill’s premises within 15 days. “The case of non-compliance on part of either of the parties (sugar mill or vendor) may be dealt with in accordance with the laws,” it added.

The FBR directed all the tax offices having jurisdictions over sugar mills to depute staff at the factory premises for monitoring the VAS installation.

An official at the Large Taxpayers Office Karachi said the video analytic will capture the production facility.

The video cameras will capture information such as real time collection of data that shows production through object detection and object counting; transmission of data to control room at the FBR on real-time basis, storage and archiving of data; detection of unexpected stoppages; quantitative analyses of production; and data analytics for required legal actions.

The official said the FBR will expand the monitoring through video cameras including production and supply of other consumer goods falling under the Third Schedule of the Sales Tax Act, 1990.

The law covers goods which are sold in retail packing in the open market. These goods are fruit juices, ice cream, aerated waters/beverages, squashes, cigarettes, beauty soaps/shampoos/toothpastes/perfumes/cosmetic items.