FBR links minimum taxable values to national retail prices and sets separate rates for three categories of oil and ghee brands.
ISLAMABAD, September 20, 2026: The Federal Board of Revenue (FBR) has fixed minimum values for domestically produced vegetable and animal fats and oils, ghee and cooking oil for the purpose of calculating sales tax.
The FBR issued SRO 1632(I)/2026 dated September 18, 2026, under the first proviso to clause (46) of Section 2 of the Sales Tax Act, 1990, prescribing minimum values for supplies of these products.
FBR links minimum values to PBS retail prices
Under the notification, the minimum value, inclusive of sales tax, will be determined on the basis of the average national retail price of vegetable and animal fats and oils, ghee and cooking oil published on the Pakistan Bureau of Statistics (PBS) website under the weekly Sensitive Price Indicator (SPI).
The average price published during the last week of the immediately preceding month will be used to determine the minimum value for the following month.
However, a Rs25 per kilogram reduction from the average national retail price will only be available to registered persons complying with the FBR’s digital invoicing and production monitoring system.
Three categories introduced for oil and ghee brands
The FBR has divided the products into three categories for determining the applicable minimum value.
Category A, comprising brands including Dalda, Habib, Sufi, Mezan, Soya Supreme and EVA, will be valued at 100% of the prescribed value.
Category B, covering brands such as Manpasand, Habib Handi, Seasons, Kashmir, Kausar, Shah Taj, Kisan, Shafaq and Sultan, will be valued at 93% of the prescribed value.
Category C, covering all other brands, will be valued at 85% of the prescribed value.
FBR explains minimum value calculation
The notification provides an illustrative calculation using prices published on the PBS portal on July 26, 2026.
The average price works out to Rs613 per litre/kg, based on pack prices of Rs3,067 for five litres/kg, Rs1,550 for 2.5 litres/kg and Rs606 for one litre/kg.
The resulting prices of Rs613, Rs620 and Rs606 produce an average of Rs613.
After deducting the Rs25 per kg available to compliant registered persons, the minimum retail price is calculated at Rs588 per kg.
September 2026 minimum values
Using the prescribed methodology, the notification sets different minimum values for the three categories.
For Category A, the minimum value is Rs588 per litre/kg, representing 100% of the average price after the applicable Rs25 deduction.
For Category B, the minimum value is Rs547 per litre/kg, representing 93% of the prescribed base value.
For Category C, the minimum value is Rs500 per litre/kg, representing 85% of the prescribed base value.
Higher actual value subject to sales tax
The FBR said supplies of oil and ghee to the Armed Forces will be subject to the value or price specified in the relevant contract.
For subsequent months, the applicable retail price will be calculated using the same methodology and the illustrative example provided in the notification.
The notification also clarifies that where the actual supply value is higher than the value fixed by the FBR, sales tax will be charged on the higher value.
SRO 1632(I)/2026 will remain applicable until the tax period of November 2026.