PESHAWAR: The Peshawar High Court (PHC) has dismissed petitions filed by 23 cigarette manufacturers challenging a Federal Board of Revenue (FBR) directive requiring the installation of closed-circuit television (CCTV) cameras at their production facilities.
A bench comprising Justice Syed Arshad Ali and Justice Mohammad Faheem Wali upheld the Aug 18, 2025 letter issued by the FBR’s Tracking and Tracing System (TTS) project director, which instructed the companies to install CCTV cameras as part of enhanced monitoring of the tobacco sector. The court issued a short order, with a detailed judgment to follow.
The petitions, led by Universal Tobacco Company and other firms, had sought to have the letter declared unlawful, arguing it was discriminatory and imposed an unreasonable burden on companies solely owned by Pakistani citizens. They also asked the court to nullify any actions taken by the FBR in connection with the directive.
In August 2024, the PHC had temporarily ordered the de-sealing of factories closed for non-compliance with the directive and restrained the FBR from taking adverse action until the matter was adjudicated.
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During Wednesday’s hearing, senior lawyer Aamir Javed, representing the FBR and other respondents, argued that substantial revenue was at stake and that the installation of CCTV cameras would not hinder the petitioners’ business operations. He said the measure was necessary due to reports of tax evasion by some manufacturers.
Javed told the court that the relevant rules had been amended in 2025, giving the FBR legal grounds to require CCTV installation. He said the surveillance would allow authorities to monitor production in real time and ensure transparency. The initiative, he noted, formed part of a broader monitoring system that already included the deployment of Inland Revenue officers under Section 40-B of the Sales Tax Act and electronic surveillance under Section 40-C.
The petitions, filed by Universal Tobacco Company and several other firms, had requested the court to declare the impugned letter illegal and set it aside.https://t.co/0s2JO3Kn6h
— Dawn.com (@dawn_com) December 11, 2025
The petitioners argued that they had fully complied with all existing tax laws — including the Sales Tax Act, Income Tax Ordinance, and Federal Excise Act — and had already borne significant costs installing the TTS system required under amendments introduced in 2019. They contended that the new CCTV requirement was excessive, especially as their facilities were already subject to continuous monitoring by the Regional Tax Office Peshawar.
Despite these arguments, the court found the FBR’s directive to be lawful and aligned with existing regulations, rejecting all pleas to overturn the requirement.
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