ISLAMABAD: Pakistan's Federal Board of Revenue (FBR) has set new minimum values for locally produced ghee and cooking oil, ranging from Rs500 to Rs588 per kilogram for September 2026, in a move aimed at improving sales tax collection and limiting under invoicing.
The FBR issued the new values under SRO 1632(I)/2026, with the benchmark based on the national average retail prices published by the Pakistan Bureau of Statistics. For registered businesses that comply with the FBR's digital invoicing and production monitoring system, a Rs25-per-kilogram reduction is allowed.
For September, the FBR placed ghee and cooking oil brands into three categories. Category A has a minimum value of Rs588 per liter, Category B has a minimum value of Rs547 per liter, and Category C, which includes all other brands, has a minimum value of Rs500 per kilogram or liter.
The FBR said the minimum values are used to calculate sales tax and do not necessarily represent the actual selling price. If a product is sold for more than the FBR's minimum value, sales tax will be calculated on the higher actual value.
The new system uses the national average retail price reported through the Pakistan Bureau of Statistics' weekly Sensitive Price Indicator for the final week of the previous month. The FBR's calculation produced an average value of Rs613 before the Rs25 reduction, resulting in the Rs588 benchmark for September.
Supplies of ghee and cooking oil to the armed forces will continue to be valued according to the prices specified in their contracts. The notification will remain in effect through the November 2026 tax period, while values for subsequent months will be recalculated under the same mechanism.
The move comes as rising food and household costs continue to put pressure on consumers. The FBR said the new valuation framework is intended to support accurate tax assessment and address under-invoicing and misdeclarations in the sector.
