ISLAMABAD: The Federal Board of Revenue (FBR) has bound all manufacturers and importers of 56 items specified in the Third Schedule of the Sales Tax Act to display retail price and the amount of sales tax to comply with the instructions of the tax machinery.
According to Sales Tax General Order 8 issued by the FBR on Monday, in terms of sub-section (2)(a) of section 3 of the Sales Tax Act, 1990, taxable supplies and imports of goods specified in the Third Schedule are chargeable to sales tax at the rate of 18 percent of the retail price. The retail price, along with the amount of sales tax, is required to be legibly, prominently and indelibly printed or embossed by the manufacturer or, in the case of imported goods, by the importer on each article, packet, container, package, cover or label, as the case may be.
The FBR has observed that, in several cases, the retail price on goods specified in the Third Schedule is either not printed, not clearly visible, or is obscured by the background, monogram, design, colour scheme, or other printed material, making it difficult to readily ascertain the retail price for levy and collection of sales tax.
The FBR has, therefore, directed that all manufacturers and importers of goods specified in the Third Schedule shall ensure that the retail price and the amount of sales tax shall not be concealed, obscured, or rendered unreadable by any design, monogram, sticker, wrapper, or any other material affixed on the goods or their packing; the Mandatory Printing Specifications shall be complied with in letter and spirit, warning that any contravention of the directions would entail action under the relevant provisions of the Sales Tax Act, 1990, and the rules made thereunder.
The visibility and prominent display of retail price and sales tax apply to goods specified in the Third Schedule, which include: fruit juices and vegetable juices; ice cream; aerated waters or beverages; syrups and squashes; cigarettes; toilet soap; detergents; shampoo; toothpaste; shaving cream; perfumery and cosmetics; tea; powder drinks; milky drinks; toilet paper and tissue paper; spices sold in retail packing bearing brand names and trademarks; shoe polish and shoe cream; cement sold in retail packing; mineral/bottled water; household electrical goods; household gas appliances; foam or spring mattresses and other foam household products; paints, distempers, enamels, pigments, colours, varnishes, gums, resins, dyes, glazes, thinners, blacks, cellulose lacquers and polishes sold in retail packing; lubricating oils, brake fluids, transmission fluid and other vehicular fluids sold in retail packing; storage batteries; tyres and tubes; motorcycles; auto rickshaws; biscuits in retail packing with brand name; tiles; auto-parts in retail packing; DAP; imported pet food; imported coffee sold in retail packing; imported chocolates sold in retail packing; imported cereal bars sold in retail packing; vegetable and animal fats and oils sold in retail packing; sugar confectionery sold in retail packing; pasta sold in retail packing; sauces, ketchup, mixed condiments and seasonings, and prepared mustard sold in retail packing; fermented beverages sold in retail packing; petroleum jelly, paraffin wax and similar products sold in retail packing; plastic plates, sheets, film, foil, tape, strip and other flat shapes sold in retail packing; plastic tableware, kitchenware, furniture, storage items, hygienic and household articles sold in retail packing; trunks, suitcases, handbags, wallets and similar containers; footwear; bathroom accessories and sanitaryware; crockery items; car and automobile accessories; milk, fat-filled milk, infant preparations and other milk products sold in retail packing; preparations for use on the hair; pre-shave, shaving, after-shave and other cosmetic or toilet preparations; toilet or facial tissue stock and similar household sanitary paper products; jams, fruit jellies, marmalades, fruit and vegetable preparations sold in retail packing; household utensils including stainless steel, aluminum and melamine tableware; ceramic products including wash basins, commodes, tiles and allied ceramic sanitary products.
