FBR sets minimum retail prices for ghee, cooking oil to curb tax evasion

The Federal Board of Revenue (FBR) has fixed minimum retail prices for ghee and cooking oil to curb tax evasion and ensure proper collection of sales tax from the sector, 24NewsHD TV reported on Tuesday. 

According to a notification issued under the Sales Tax Act, 1990, the minimum prices have been set for locally produced vegetable and animal fats and oils, ghee and cooking oil.

Sales tax will be collected from manufacturers based on these notified prices.

According to the FBR notification, the minimum price will be calculated by deducting Rs25 per kilogram from the average national retail price recorded in the last week of the previous month under the SPI published on the Pakistan Bureau of Statistics (PBS) website.

However, the Rs25 per kg relief will be available only to registered manufacturers that comply with the FBR’s digital invoicing and production monitoring systems.

The FBR has divided ghee and cooking oil brands into three categories.

Category A includes Dalda, Habib, Sufi, Mezan, Soya Supreme and Eva, with a minimum price equal to 100% of the average national retail price.

Category B includes Manpasand, Habib Handi, Seasons, Kashmir, Kausar, Shah Taj, Kisan, Shafaq and Sultan, with a minimum price set at 93% of the average national retail price.

All other brands fall under Category C, for which the minimum price has been fixed at 85% of the average national retail price.

For August 2026, the average national retail price published on the PBS portal on July 26 was Rs613 per litre/kg. After deducting Rs25, the minimum retail price was set at Rs588 per litre/kg.

For September 2026, the minimum prices are Rs588 for Category A, Rs547 for Category B, and Rs500 per litre/kg for Category C. Prices for subsequent months will be calculated using the same formula.

The FBR said that if the products are supplied at a price higher than the notified minimum, sales tax will be charged on the higher sale price.

The notification will remain effective until the November 2026 tax period.