← Home · Sales Tax
FBR Revises Sales Tax Valuation Rules for Five Categories of Manufacturers and Importers
The Federal Board of Revenue (FBR) has issued a corrigendum — Sales Tax General Order (STGO) No. 19 of 2026 — clarifying how sales tax is valued and collected on specified local supplies and imports falling under Serial No. 65 of the Third Schedule to the Sales Tax Act, 1990. The order replaces the earlier Annexure-A to the original general order with a revised version, and applies retrospectively from July 1, 2026.
What Changed
Serial No. 65 of the Third Schedule covers retail-price-basis goods — footwear being the item most directly named — sold through FBR's digitally-integrated, POS-compliant retail network. STGO 19 of 2026 doesn't change the headline sales tax rate; it clarifies the valuation basis the tax is charged on, and which of five specific supply-chain categories each valuation rule applies to.
The Five Categories Affected
- Footwear supplied by registered manufacturers through FBR digitally-integrated, POS-compliant retail outlets
- Supplies made by importers to registered manufacturers or digitally-integrated retailers
- Goods imported directly by POS-compliant retailers for sale to end consumers
- Supplies by digitally-integrated manufacturers or importers to registered corporate entities and government bodies (federal/provincial departments, autonomous and statutory bodies)
- Manufacturers supplying exclusively to FBR digitally-integrated, POS-compliant retailers
The New Valuation Rules
For local supplies, sales tax is charged on the value of supply as defined under Section 2(46) of the Sales Tax Act, 1990 — the standard transaction-value basis.
For imports falling under these categories, sales tax is instead assessed on 130% of the value determined under Section 25 of the Customs Act, 1969, inclusive of applicable customs duties and Federal Excise Duty. In practice, this uplift raises the base an importer's sales tax is calculated on well above the plain customs-assessed value, since duties and FED are added in before the 130% multiplier is applied.
Effective Date
The order is applied retrospectively from July 1, 2026 — meaning supplies and imports falling under these five categories since the start of the current tax year are subject to the revised valuation basis, not just transactions going forward from the notification date.
What It Means Going Forward
For manufacturers and retailers already integrated into FBR's POS network, the local-supply rule mostly confirms existing practice — tax on the actual value of supply. The bigger practical shift is for importers in these five categories, who now need to recompute sales tax on imports already made since July 1 using the 130%-of-customs-value formula, potentially triggering catch-up payments or adjustments for the months before the corrigendum was issued. Businesses that supply footwear or move goods through POS-integrated retail chains — including those supplying corporate and government buyers — should confirm which of the five categories they fall into and check their sales tax filings since July 2026 against the revised Annexure-A.
Source: Monitoring Report, Profit by Pakistan Today, August 21, 2026.
Check your own numbers. The Sales Tax (GST) Calculator now includes a line for Third Schedule footwear/POS-retail supplies and their valuation basis, or use the all-in-one invoice tool to check withholding and provincial sales tax on a supplier payment.