Unlicensed brands and stock keeping units to be treated as counterfeit goods liable to confiscation and destruction
ISLAMABAD: The Federal Board of Revenue (FBR) has made it mandatory for manufacturers of specified goods to obtain brand licences for each Stock Keeping Unit (SKU) under the updated Federal Excise Act, 2005, revised up to June 30, 2026.
The new requirement aims to strengthen regulatory control over excisable goods, improve product traceability and prevent the manufacturing and sale of counterfeit products in Pakistan.
Separate licence required for each brand and SKU
According to the amended provisions, manufacturers of specified goods must obtain a separate brand licence for every brand or SKU in the manner prescribed by the FBR.
The law empowers the Board to determine the procedure and requirements for obtaining such licences, ensuring that each registered product category remains identifiable and properly monitored.
The amendment is part of broader tax administration reforms focused on improving compliance and strengthening oversight of industries subject to federal excise duty.
Unlicensed products to face confiscation
The updated Federal Excise Act states that any specified brand or SKU found being sold without the required licence will be considered counterfeit goods.
Such products will be subject to immediate confiscation and destruction according to the procedure prescribed under the law.
The legislation further clarifies that confiscation and destruction of unlicensed goods will not prevent authorities from taking additional legal action under the provisions of the Federal Excise Act, 2005.
FBR strengthens excise monitoring framework
The latest amendment follows a series of measures introduced by the FBR to enhance monitoring of excisable products through licensing requirements, digital tracking systems and stronger enforcement mechanisms.
The tax authority has recently expanded its powers to implement electronic monitoring, require tax stamps and seize goods manufactured or sold without compliance with excise regulations.
Impact on excisable goods sector
Tax experts said the mandatory FBR brand licences for SKU requirement could improve transparency across the supply chain by creating a clear identification system for excisable products.
They added that stronger licensing controls may help curb illegal manufacturing, prevent counterfeit goods from entering the market and improve revenue collection by ensuring greater compliance among manufacturers.
The measure is expected to particularly impact sectors where counterfeit production and tax evasion remain major concerns, including tobacco, beverages and other excisable goods categories.