FBR revises sales tax rules for five categories of manufacturers and importers

Profit by Pakistan Today reported that the FBR has amended sales tax treatment for certain local supplies and imports by manufacturers and importers. The change came via a corrigendum setting out valuation and collection rules under Serial No. 65 of the Third Schedule to the Sales Tax Act, 1990. Local sales by manufacturers will be taxed on the value defined in Section 2(46), while imports under the same serial will attract tax at 130% of the customs-assessed value under Section 25 of the Customs Act, 1969, which already includes customs levies and Federal Excise Duty.

The revised general order, numbered 19 of 2026, covers five categories of supply. It covers footwear sold through manufacturers' own digitally integrated, POS-compliant stores, sales from importers to registered producers or qualifying retailers, and direct imports by such retailers for end consumers. It also reaches sales to registered companies, federal and provincial departments, autonomous bodies and statutory bodies buying for their own use, when the seller is a digitally integrated manufacturer or registered importer, and it covers manufacturers that supply exclusively to digitally integrated, POS-compliant retailers.

A replacement Annexure-A now governs how tax is levied, assessed and collected on Serial No. 65 items. The changes take effect retrospectively from July 1, 2026, and the rest of the earlier order is unchanged. According to the FBR, the aim is to clear up ambiguity and secure uniform implementation.