Karachi, December 8, 2023 – The Federal Board of Revenue (FBR) has taken a significant step in streamlining the retail market by issuing a comprehensive list of items for which the fixation of retail prices is now mandatory.
This directive applies to both manufacturers and importers, compelling them to establish retail prices before supplying goods. The FBR’s move comes in conjunction with the release of the updated Sales Tax Act, 1990, applicable for the tax year 2024.
According to the newly amended sales tax law, the retail price, as per the Third Schedule, is defined as the price determined by the manufacturer or importer, including all duties, charges, and taxes (excluding sales tax). This specified price is the amount at which any particular brand or variety of an article should be sold to the general body of consumers. In cases where multiple prices are set for the same brand or variety, the highest among them is considered. The Board also reserves the authority to identify zones or areas through a general order for determining the highest retail price for specific goods.
The FBR’s list includes a wide range of items, each categorized with their respective heading numbers from the First Schedule to the Customs Act, 1969. Notable items on the list include:
1. Fruit Juices and Vegetable Juices (Heading No. 20.09)
2. Ice Cream (Heading No. 2105.0000)
3. Aerated Waters or Beverages (Heading Nos. 22.01 and 20.02)
4. Cigarettes (Heading No. 2402.2000)
5. Toilet Soap (Heading Nos. 3401.1100 and 3401.2000)
6. Detergents (Respective heading)
7. Shampoo (Heading No. 3305.1000)
8. Toothpaste (Heading No. 3306.1010)
9. Tea (Respective sub-headings of 09.02)
10. Powder Drinks (Heading No. 21.06)
11. Milky Drinks (Heading No. 2106.9090)
12. Toilet Paper and Tissue Paper (Heading Nos. 4818.1000 and 4818.2000)
13. Spices Sold in Retail Packing with Brand Names and Trademarks (Heading Nos. 09.04, 09.06, 09.08, and 09.10)
14. Shoe Polish and Shoe Cream (Heading No. 3405.1010)
15. Cement Sold in Retail Packing (Respective heading)
16. Mineral/Bottled Water (Respective headings)
17. Household Electrical Goods, Household Gas Appliances, and Foam or Spring Mattresses (Respective headings)
18. Paints, Distempers, Enamels, Pigments, Colours, Varnishes, Gums, Resins, Dyes, Glazes, Thinners, Blacks, Cellulose Lacquers, and Polishes Sold in Retail Packing (Respective headings)
19. Lubricating Oils, Brake Fluids, Transmission Fluid, and Other Vehicular Fluids Sold in Retail Packing (Respective headings)
20. Storage Batteries, Tyres and Tubes, Motorcycles, Auto Rickshaws, Biscuits in Retail Packing with Brand Name, Tiles, and Auto-Parts (Respective headings)
This move by the FBR aims to enhance transparency and regulate pricing in the retail sector, ultimately benefiting consumers and ensuring fair market practices. The enforcement of retail price fixation for these specified goods is set to have a considerable impact on the business practices of manufacturers and importers across the country.
