Islamabad (Commerce Desk): The Federal Board of Revenue (FBR) has set minimum retail prices for ghee and cooking oil to prevent alleged tax evasion in the sector and ensure full tax collection.
According to an FBR notification, minimum prices have been fixed under the Sales Tax Act, 1990, for locally manufactured vegetable and animal fats, oils, ghee and cooking oil. Taxes will henceforth be collected from manufacturers based on these prices.
Under the notification, ghee and cooking oil brands have been divided into three categories. Category “A” includes Dalda, Habib, Sufi, Mezan, Soya Supreme and Eva, for which the minimum price will be equal to 100% of the average national retail price.
Category “B” includes Manpasand, Habib Handi, Seasons, Kashmir, Kausar, Shah Taj, Kisan, Shafaq and Sultan, for which the minimum price has been set at 93% of the average national price. Category “C” includes all other brands, for which the minimum price will be equivalent to 85% of the average price.
According to the FBR, the minimum price will be determined by reducing Rs25 per kilogram from the average national retail price recorded in the final week of the previous month in the Pakistan Bureau of Statistics’ weekly Sensitive Price Indicator. However, this concession will only be available to registered persons who comply with the FBR’s invoicing and production monitoring systems.
For August 2026, based on prices published on July 26, the average price was set at Rs613 per kilogram or litre. After a reduction of Rs25, the minimum retail price was fixed at Rs588.
For September 2026, the minimum price has been set at Rs588 per kilogram or litre for Category A, Rs547 for Category B and Rs500 for Category C. Prices for subsequent months will also be determined under the same mechanism.
According to the FBR, if the products are sold above the prescribed minimum price, sales tax will be collected on the higher price. The notification will remain effective until the tax period of November 2026.