The Federal Board of Revenue (FBR) has fixed minimum values for locally produced ghee and cooking oil for September 2026. The new values will be used to calculate sales tax on these products.
The FBR introduced the new system through SRO 1632(I)/2026. The move prevents under-invoicing and incorrect declarations in the ghee and cooking oil sector. It will also help the government calculate sales tax on actual market values.
How will minimum prices be calculated?
The minimum value will be linked to the national average retail price published by the Pakistan Bureau of Statistics (PBS). The FBR will use prices from the last week of the previous month.
A discount of Rs25 per kilogram will be allowed for registered businesses that follow the FBR’s digital invoicing and production monitoring system.
The benchmark value after this adjustment is Rs588 per litre or kilogram for september.
Three categories for Ghee and Cooking oil
The FBR has divided brands into three categories.
- Category A includes Dalda, Habib, Sufi, Mezan, Soya Supreme and EVA. Their minimum value is Rs588 per litre/kg, or 100 per cent of the benchmark.
- Category B includes Manpasand, Habib Handi, Seasons, Kashmir, Kausar, Shah Taj, Kisan, Shafaq and Sultan. Their minimum value is Rs547 per litre/kg, equal to 93 per cent of the benchmark.
- Category C includes all other brands. Their minimum value is Rs500 per litre/kg, or 85 per cent of the benchmark.
The FBR has clarified that these figures are minimum values used for sales tax purposes. If a company sells ghee or cooking oil at a higher actual value, sales tax will be calculated using that higher value.
Meanwhile, supplies of ghee and cooking oil to the Armed Forces will be valued according to the prices mentioned in their contracts.
The notification will remain effective through the November 2026 tax period.
Massive hike in oil, ghee prices
Previously, Inflation weary Pakistanis faced a rise in the prices of ghee and cooking oil, adding further pressure to household budgets.
The latest fuel prices hike has raised concerns about another wave of inflation, with increased transportation and freight costs expected to affect the prices of food items and other essential commodities.
Grade-III ghee last month was being sold at around Rs500 per kilogram, while supplies available below this price have become increasingly scarce.