Islamabad: The Federal Board of Revenue (FBR) has issued Sales Tax General Order (STGO) No. 8 of 2026 / IR Policy, directing all manufacturers and importers to ensure that the retail price and sales tax are clearly, prominently, and indelibly displayed on goods listed in the Third Schedule of the Sales Tax Act, 1990.
The order, issued by the Policy Wing of Inland Revenue on July 2, 2026, aims to strengthen tax compliance, improve transparency, and facilitate the proper collection of sales tax on specified goods.
Under Section 3(2)(a) of the Sales Tax Act, 1990, goods listed in the Third Schedule are subject to 18% sales tax on the retail price. The law also requires that the retail price along with the amount of sales tax be printed or embossed on every product or its packaging.
According to the FBR, it has observed that in many cases:
- Retail prices are not printed.
- Prices are not clearly visible.
- The printed price is hidden by background designs, monograms, or colour schemes.
- Product packaging makes it difficult to identify the actual retail price.
These practices create difficulties in determining the correct tax liability and affect the proper levy and collection of sales tax.
Through the General Order, the FBR has instructed all manufacturers and importers dealing in Third Schedule goods to ensure that:
- The retail price is printed clearly and prominently.
- The amount of sales tax is displayed alongside the retail price.
- The information is legible and indelible.
- The price and tax details are not obscured by packaging design, labels, graphics, or colour combinations.
- The printing appears on the article, packet, container, package, cover, or label, as applicable.
The FBR stated that the directive is intended to:
- Improve transparency in retail pricing.
- Facilitate effective sales tax enforcement.
- Prevent concealment or manipulation of retail prices.
- Ensure uniform compliance with the provisions of the Sales Tax Act, 1990.
- Protect government revenue by enabling accurate tax collection.
Manufacturers and importers of goods covered under the Third Schedule are expected to immediately review their product packaging and labeling to ensure compliance with the new instructions. Failure to properly display the retail price and applicable sales tax may attract enforcement action under the Sales Tax Act, 1990.
The latest order reinforces the FBR’s ongoing efforts to improve tax administration, reduce ambiguities in retail pricing, and enhance compliance across sectors dealing in products subject to retail price-based sales tax.
