KCCI says the FBR’s latest sales tax order clarifies stock transfers between factories and own warehouses and removes unnecessary compliance hurdles.
KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has welcomed the Federal Board of Revenue’s (FBR) issuance of Sales Tax General Order (STGO) No. 25 of 2026, describing it as an important step towards facilitating manufacturers and ensuring the smooth movement of goods between factories and their own warehouses.
KCCI President Rehan Hanif said the issuance of the order followed the chamber’s sustained efforts to highlight difficulties faced by the business community and seek practical solutions from the relevant authorities.
He said the chamber had consistently raised the matter at appropriate forums and engaged with concerned authorities until a workable resolution was reached.
FBR clarifies stock transfers between own premises
Under STGO No. 25 of 2026, the FBR has clarified that the movement of goods from a factory to a registered person’s own warehouse does not constitute a taxable supply where both premises operate under the same Sales Tax Registration Number (STRN).
As a result, such movement does not attract the requirement for digital invoicing.
Under the prescribed procedure, businesses transporting such goods are required to carry a Stock Transfer Note clearly endorsed with the words:
“Stock Transfer — Not a Taxable Supply”.
The order further directs field formations not to treat the Stock Transfer Note as evidence of non-compliance where both the dispatching and receiving premises are registered under the same STRN.
KCCI welcomes protection against unnecessary checks
Rehan Hanif said the clarification would help eliminate uncertainty for businesses and facilitate the uninterrupted movement of goods between their own premises.
He added that the order would provide greater clarity to taxpayers and field formations regarding the documentation required when goods are transported between registered premises.
The KCCI president particularly appreciated provisions directing field officers to ensure the smooth and unhindered movement of goods and preventing them from demanding documents beyond those prescribed under the order.
He also welcomed the provision stating that goods in transit should not be subjected to physical checking, examination or unloading, subject to the specific exception under the order for goods covered by the Third Schedule.
KCCI says order will improve business facilitation
“The business community needs clear, predictable and facilitative procedures. The latest FBR Order addresses an important practical issue and will help businesses conduct legitimate inter-premises movement of their goods without unnecessary complications,” Rehan Hanif said.
He reiterated that the Karachi Chamber would continue to raise issues affecting businesses with the government and regulatory authorities and pursue them until practical and business-friendly solutions were achieved.
The KCCI president said greater regulatory clarity was essential for improving the ease of doing business, reducing unnecessary procedural hurdles and enabling manufacturers to maintain efficient supply and distribution operations.