PFIA Expresses Concern Over FBR’s New Directives on Retail Price and Sales Tax Labelling

By Dr. Ansab Ali
Lahore, Pakistan

LAHORE: The Pakistan FMCG Importers Association (PFIA) has expressed serious concerns over the Federal Board of Revenue’s (FBR) new directives requiring the retail price, sales tax, and total price of imported goods covered under the Third Schedule of the Sales Tax Act to be permanently printed on product packaging, describing the requirement as impractical for imported products.

According to the association, Sales Tax General Order (STGO) No. 8 of 2026 directs importers to ensure that all imported products falling under the Third Schedule display the retail price, sales tax, and total price in a clear, prominent, permanent, and non-removable manner as an integral part of the packaging or label. The order also prohibits the use of separate stickers or removable labels for displaying this information.

In a statement issued on Monday, PFIA Chairman Anjum Nisar said that multinational manufacturers produce goods for multiple international markets on the same production lines using standardized packaging printed in accordance with global requirements. He said requiring manufacturers to print Pakistan-specific retail prices and taxes at overseas factories, or to produce separate packaging exclusively for Pakistan, is commercially impractical and would significantly increase import costs, disrupt supply chains, and affect the availability of imported products in the local market.

Anjum Nisar further explained that the final retail price of imported goods is determined only after the products arrive in Pakistan, as it depends on several variables, including freight charges, exchange rate fluctuations, customs duties, and other import-related expenses. As a result, he said, it is not feasible to print Pakistan-specific retail prices and sales tax details on product packaging before shipment from the country of origin.

He urged the FBR to review the requirement for imported products and allow importers to use secure, tamper-proof stickers or another practical mechanism to affix retail prices after the goods arrive in Pakistan. Such a solution, he said, would ensure that consumers receive accurate pricing information while preventing unnecessary disruption to legitimate import trade.

The PFIA chairman cautioned that implementing the current directives without consultation with stakeholders could disrupt the supply of a wide range of imported products, increase the cost of doing business, and create avoidable challenges in the market. He appealed to the government and the FBR to engage with all relevant stakeholders and develop a practical, workable mechanism that meets the government’s revenue objectives without adversely affecting legitimate import businesses.