ISLAMABAD: The Federal Board of Revenue has issued a corrigendum to remove ambiguity and ensure uniform implementation of sales tax provisions for the footwear sector, according to an official notification.
Sales Tax General Order No. 19 of 2026, dated Aug. 20, amends the earlier STGO No. 11 of 2026 issued July 17. The amendment specifically addresses supplies falling under Serial No. 65 of the Third Schedule to the Sales Tax Act, 1990, which covers footwear of all types.
The FBR has withdrawn the existing Annexure-A attached to the original general order and replaced it with a revised version that will govern the levy, assessment and collection of sales tax on covered supplies. All references to Annexure-A in the earlier order will now be construed as references to the revised annexure.
The revised framework applies to five categories of supplies:
– Footwear supplied by registered manufacturers through their own FBR digitally integrated and POS-compliant retail outlets
– 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
– Supplies made by digitally integrated registered manufacturers or registered importers to registered corporate entities, federal or provincial government departments, autonomous bodies or statutory bodies as end-consumers for their own use
– Supplies made by a registered taxpayer manufacturing exclusively for an FBR digitally integrated and POS-compliant retailer
For local supplies by manufacturers, sales tax will be charged on the value of supply as defined under Section 2(46) of the Sales Tax Act. For imports of goods covered under Serial No. 65, sales tax will be assessed and collected on a value equal to 130% of the value determined under Section 25 of the Customs Act, 1969, inclusive of applicable customs duties and Federal Excise Duty.
The FBR noted that the Pakistan Footwear Manufacturers Association had raised implementation and interpretational concerns following the insertion of Serial No. 65 through the Finance Act, 2026 . The board observed that supplies made through documented and electronically verifiable supply chains have readily ascertainable value under the law, and that footwear manufacturers supplying independent brand owners do not determine the ultimate retail price.
All other provisions of STGO No. 11 of 2026 will remain unchanged and continue to have full force and effect. The corrigendum takes effect retrospectively from July 1, 2026, and will be read as one with the earlier general order.