A dispute between the textile industry and the Federal Board of Revenue (FBR) has intensified after mill owners opposed a proposal requiring them to install surveillance cameras at their factories with their own money.

FBR has asked textile manufacturers to install cameras to help curb tax evasion. However, mill owners have refused to bear the cost, arguing that the move would impose an additional financial burden running into millions of rupees.

Industry representatives warned that factories could be shut down if the installation of cameras is made mandatory without government support. They said the textile sector is already facing significant challenges and cannot absorb further expenses.

Factory owners compared the proposal to Safe City surveillance systems, saying motorists do not pay for the cameras used to issue traffic fines. They argued that if the FBR requires cameras for monitoring purposes, it should install them at its own expense.

Textile manufacturers also suggested that the tax authority expand the initiative beyond textile mills to include ginning and spinning units.

They noted that only around 180 textile mills remain operational in the country, while more than 1,200 ginning and spinning mills could potentially generate higher tax revenues.

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