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

The Federal Board of Revenue (FBR) has revised the sales tax treatment for specified manufacturers and importers under Serial No. 65 of the Third Schedule to the Sales Tax Act, 1990, aiming to clarify the valuation and collection mechanism.

 

Under the revised Sales Tax General Order, sales tax on eligible local supplies by manufacturers will be charged on the value of supply as defined under the Sales Tax Act.

 

For covered imports, sales tax will be calculated at 130% of the customs-determined value, including applicable customs duties and Federal Excise Duty.

 

The revised framework covers five categories, including footwear supplied by registered manufacturers through their own FBR digitally integrated and POS-compliant retail outlets. It also covers supplies by importers to registered manufacturers or digitally integrated retailers, as well as goods directly imported by such retailers for sale to consumers.

 

The rules further apply to supplies by digitally integrated manufacturers or registered importers to corporate entities, government departments, autonomous bodies and statutory bodies purchasing goods for their own use.

 

The FBR said the corrigendum was issued to remove ambiguity and ensure uniform implementation of sales tax provisions. The existing Annexure-A has been withdrawn and replaced with a revised version.

 

The changes will apply retrospectively from July 1, 2026, while the remaining provisions of the earlier Sales Tax General Order will continue unchanged.