Tax authority empowered to adopt Pakistan Bureau of Statistics valuations and outsource goods valuation to strengthen sales tax compliance.
ISLAMABAD: The Federal Board of Revenue (FBR) has been authorised to use valuation data compiled by the Pakistan Bureau of Statistics (PBS) as a benchmark for determining the value of taxable supplies under the Sales Tax Act, 1990, following amendments introduced through the Finance Act, 2026.
The amendment enables the FBR to rely on the value of goods notified by the Pakistan Bureau of Statistics immediately before the commencement of a tax period when determining the value of supply for sales tax purposes.
According to the revised provisions of the Sales Tax Act, the benchmark valuation may be used by the FBR where it considers such data appropriate for assessing the value of taxable goods.
PBS data to support valuation
The new provision is intended to strengthen the valuation framework by allowing the tax authority to use independently compiled statistical data as a reference point when determining the taxable value of supplies.
Officials believe the measure will improve consistency in valuation practices while supporting more accurate sales tax assessments.
FBR may outsource valuation
In addition to using PBS data, the Finance Act, 2026 authorises the FBR to outsource the valuation of goods to a third party.
The outsourcing process will be carried out in accordance with the procedures and conditions prescribed by the tax authority, allowing specialised entities to assist in determining the value of taxable goods where required.
Improving transparency and compliance
The amendment is aimed at strengthening the valuation mechanism, enhancing transparency in tax administration and ensuring a more reliable determination of the value of taxable supplies.
Tax experts say the use of independent valuation data from the Pakistan Bureau of Statistics could help reduce under-invoicing, minimise disputes over the valuation of goods and promote greater uniformity in sales tax assessments.
The provision forms part of the wider tax administration reforms introduced through the Finance Act, 2026, which seek to improve compliance, enhance revenue collection and modernise Pakistan’s indirect tax framework through greater use of data-driven valuation methods.