ISLAMABAD: The Federal Board of Revenue (FBR) has issued a corrigendum to clarify the levy, assessment and collection of sales tax on supplies covered under Serial No. 65 of the Third Schedule to the Sales Tax Act, 1990.
The FBR issued Sales Tax General Order (STGO) No. 19/2026, amending STGO No. 11/2026 issued on July 17, 2026.
The tax authority said the corrigendum was issued to remove ambiguity and ensure the uniform implementation of sales tax provisions applicable to supplies falling under Serial No. 65 of the Third Schedule.
Revised Annexure-A issued
Under the corrigendum, the existing Annexure-A attached to STGO No. 11/2026 has been withdrawn and replaced with a revised Annexure-A.
The revised annexure will form an integral part of STGO No. 11/2026 and will govern the levy, assessment and collection of sales tax on supplies covered by Serial No. 65 of the Third Schedule.
The FBR has also clarified that all references to Annexure-A in STGO No. 11/2026 will now be read as references to the revised Annexure-A attached to the corrigendum.
All other provisions of STGO No. 11/2026 will remain unchanged and continue to have full force and effect, except where specifically modified by the corrigendum.
The corrigendum will take effect from July 1, 2026 and will be read together with STGO No. 11/2026.
Footwear supplies covered
The revised Annexure-A covers supplies of footwear made by registered manufacturers through their own FBR digitally integrated and POS-compliant retail outlets.
It also covers supplies made by importers to registered manufacturers or FBR digitally integrated and POS-compliant retailers.
Goods imported directly by FBR digitally integrated and POS-compliant retailers for subsequent supply to end consumers are also included.
Supplies to corporate and government entities
The revised provisions further apply to supplies made by digitally integrated manufacturers or registered importers to registered corporate entities, Federal or Provincial Government departments, autonomous bodies or statutory bodies.
These supplies must be made to such entities as end consumers for their own use.
The annexure also covers supplies made by a registered taxpayer manufacturing exclusively for an FBR digitally integrated and POS-compliant retailer.
Sales tax on local supplies
The FBR has clarified the basis for calculating sales tax on the covered supplies.
In the case of local supplies by a manufacturer, sales tax will be charged on the value of supply as defined under Section 2(46) of the Sales Tax Act, 1990.
This provision establishes the basis on which the taxable value of locally manufactured goods will be determined.
Sales tax on imported goods
For imports of goods covered under Serial No. 65 of the Third Schedule, sales tax will be assessable and collectable on a value equal to 130% of the value determined under Section 25 of the Customs Act, 1969.
The prescribed value will include applicable customs duties and Federal Excise Duty (FED).
The FBR has therefore specified a separate valuation mechanism for imported goods falling within the relevant Third Schedule category.
Retailer responsible for tax on retail value
The corrigendum further provides that the relevant retailer will pay tax on the retail value of the goods.
However, both the supplier and retailer must be digitally integrated with the FBR and POS-compliant.
They must also issue digital tax invoices for the relevant transactions.
FBR seeks uniform implementation
The latest corrigendum is intended to remove uncertainty surrounding the implementation of sales tax provisions under Serial No. 65 of the Third Schedule.
By replacing Annexure-A and clarifying the applicable valuation and digital-integration requirements, the FBR aims to ensure consistent treatment of covered supplies, particularly those involving footwear manufacturers, importers and POS-integrated retailers.
