ISLAMABAD: Brand licensing has been proposed to make mandatory for manufacturers of specified goods. In failure to comply with it is proposed the Federal Board of Revenue (FBR) should be empowered to confiscate such items.
FBR sources said that licensing of brand name has been proposed to make mandatory through an amendment to Sales Tax Act, 1990.
The Finance Bill, 2021 proposed Section 40E to the Sales Tax Act, 1990, which stated that manufacturers of the specified goods shall be required to obtain brand licence for each brand or stock keeping unit (SKU) in such manner as may be prescribed by the FBR.
Any specified brand and SKU found to be sold without obtaining a licence from the FBR shall be deemed counterfeit goods and liable to outright confiscation and destruction in the prescribed manner and such destruction and confiscation shall be without prejudice to any other penal action which may be taken under this Act.