The Federal Board of Revenue (FBR) has fixed minimum retail prices for ghee and cooking oil to curb alleged tax evasion in the sector and ensure tax collection according to full capacity. Moving forward, tax will be collected from cooking oil and ghee manufacturers based on these prescribed prices.
The FBR issued a notification stating that, under the Sales Tax Act of 1990, minimum prices have been established for locally produced vegetable and animal fats, oils, ghee, and cooking oil. According to the notification, the minimum price will be set by taking the average national retail price of the last week of the previous month from the Sensitive Price Indicator (SPI) published on the Pakistan Bureau of Statistics (PBS) website and deducting 25 rupees per kg. However, this 25 rupee per kg concession is exclusively available to registered individuals who comply with the FBR’s digital invoicing and production monitoring system.
