The FBR has established two committees to address issues related to the implementation of the Third Schedule. The initiative is aimed at improving compliance and resolving practical challenges faced by businesses dealing with imported and locally produced goods.
According to an official notification issued on August 5, the committees have been formed under the Inland Revenue Wing. Their role is to review implementation problems and recommend practical solutions. The move is expected to make the application of Third Schedule rules more efficient and transparent.
The first committee will work at the FBR Headquarters. It will focus on matters related to domestic goods covered under the Third Schedule. The committee will examine recommendations received from the field-level committee and assess issues reported by businesses and tax officials.
In addition, the headquarters committee will have the authority to issue Sales Tax General Orders (STGOs) whenever needed. These orders will help clarify procedures and resolve implementation difficulties that arise during the enforcement of Third Schedule provisions.
A second committee has been established at the Large Taxpayer Office (LTO) Karachi. This committee will concentrate on issues involving imported goods. It will study the practical challenges faced by importers and prepare recommendations for submission to the FBR Headquarters.
One of the committee’s main responsibilities is to identify practical methods for displaying prices on imported products. It will determine the most suitable way to print or affix prices while ensuring compliance with legal requirements.
The field-level committee will also decide which quantity or package size should carry the printed price. This review is intended to remove confusion for importers and improve consistency in the implementation of pricing rules.
Another key responsibility is the development of a pricing formula for goods covered under the Third Schedule. The committee will consider changes in foreign exchange rates in both international and domestic markets. Other relevant market factors affecting product prices will also be taken into account.
After completing its review, the Karachi committee will submit its recommendations to the headquarters for further evaluation. The FBR will examine the proposals before deciding whether additional regulatory measures or clarifications are required.
Officials believe these committees will help improve the overall implementation of Third Schedule provisions. A more practical approach is expected to reduce compliance issues and create greater clarity for businesses across different sectors.
The initiative also reflects the tax authority’s efforts to strengthen the sales tax system through better coordination between headquarters and field offices. By reviewing operational challenges and introducing practical solutions, the FBR aims to ensure that pricing requirements for imported and domestic goods are applied fairly and consistently.
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The formation of these committees marks another step toward improving tax administration in Pakistan. Businesses are expected to benefit from clearer guidelines and a more predictable regulatory framework once the recommendations are finalized and implemented.
