A. Updated Commentary

We refer to KQU 3983 of 7.7.26 whereby shared an authentic version of  STGO No. 8 / 2026 / IR policy of 2.7.26 - Visibility and prominent display of retail price and sales goods specified in the Third schedule to the STA 1990 (Attachment 3605.1). Earlier, we shared an unauthentic version with red star (*) vide KQU 3978 of 3.7.26. Both are the same. Being an an important matter, we now cover its Commentary in ensuing paragraphs.

2. In terms of sub-section (2)(a) of section 3 of the Sales Tax Act (STA), taxable supplies and imports of goods specified in the Third Schedule are chargeable to sales tax at the rate of eighteen per cent of the retail price. and the retail price along with the amount of sales tax is required to be legibly, prominently and indelibly printed or embossed by the manufacturer or, in the case of imported goods, by the importer on each article, packet, container, package, cover, or label, as the case may be.

3. The FBR has observed that, in a number of cases, the retail price on goods specified in the Third Schedule is either not printed, not clearly visible, or is obscured by the Background, monogram, design, colour scheme or other printed material, making it difficult to readily ascertain the retail price for the purposes of levy and collection of sales tax.

4. The FBR is, therefore, pleased to direct that all manufacturers and importers of goods specified in the Third Schedule to the STA, 1990, (the list of which, together with the descriptions thereof, is enclosed as Annex-A) shall ensure that the retail price and the amount of sales tax are displayed in a clear, legible, prominent and indelible manner, using a font size and colour that distinctly contrast with the background and remain readily visible and easily readable to the naked eye. The retail price and the amount of sales tax shall not be concealed, obscured or rendered unreadable by any design, monogram, sticker, wrapper or any other material affixed on the goods or their packing. The Mandatory Printing Specifications, attached as Annex-B, shall be complied with in letter and spirit.

5. Any contravention of the above directions shall entail action under the relevant provisions of the STA and the rules made thereunder.

6. In case of any ambiguity regarding the implementation or interpretation of this General Order, the concerned persons may contact the IR-Policy Wing. FBR, for clarification.

7. This General Order is shall come into force with immediate effect i.e. from 2.7.26, as stated in STGO.

Annex A: (pages 2 to 5 of STGO) provides the updated Third Schedule items, having several 1 to 56.

Annex B: (pages 6 to 8 of STGO) cover Monitoring Specification with the following matters in details.

(1) Purpose & Scope

(2)  Information Required on Every Retail Pack

(3) Size & Legibility

(4) Background & Placement (anti-concealment)

(5) Permanence

(6) Compliant vs. Non-Compliant (at a glance)

B. KC Views

We are of the view that almost all the above matters align with the FST laws and earlier Explanatory Circulars / STGOs. 

Hence, these matters have been applicable since the introduction of the Third Schedule, as amended from time to time. 

C. Further Details & Services

Should you require any clarification or explanations in respect of the above or otherwise, or require Income Tax, Federal & Provincial Sales Tax or Withholding Tax Statement, Advisory, Return Filing or Review services, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com, asif.s.kasbati@professional-excellence.com.

Best regards for Here & Hereafter

Asif S Kasbati (FCA, FCMA & LLB)

Managing Partner 

Kasbati & Co (1400+ Tax, Levies, Companies, Economy, Inflation, HR, Banking, Finance, etc

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