FBR eases packaging rules for small chocolates, allowing retail price, tax information on outer packaging

PAKISTAN – Pakistan’s Federal Board of Revenue has relaxed packaging rules for small confectionery products, allowing manufacturers to print retail price and sales tax information on outer packaging rather than on each individual piece for packs containing up to 250 items, up from the previous limit of 100 pieces.

The revised clarification applies to confectionery items with a maximum retail price of Rs 10 (US$0.07) per piece and a maximum weight of 10 grams, with the facility remaining subject to the relevant provisions of the Sales Tax Act, 1990. 

The FBR stated that the clarification was issued in view of practical difficulties faced by manufacturers in separately printing or embossing mandatory information on very small confectionery items. 

Compliance Conditions and Industry Impact

The relaxation comes with specific conditions: each confectionery item inside the package must have a maximum retail price of Rs 10 (US$0.07) and must weigh no more than 10 grams, meaning packages containing products meeting both conditions can carry the applicable retail price and sales tax information on the outer packaging rather than on every individual piece. 

The tax authority has also clarified more broadly that sales tax on taxable goods is governed by the Sales Tax Act, while goods specifically exempted under the Sixth Schedule are treated differently. 

The move is expected to reduce packaging and compliance difficulties for manufacturers of low-value confectionery while maintaining the requirement for clear retail-price and tax information at the package level.

Practical Benefits for Confectionery Manufacturers

The change particularly affects mass-market candies, toffees and other low-priced confectionery sold in large multipacks, potentially making packaging operations simpler for manufacturers without removing sales-tax compliance requirements. 

Previously, manufacturers were required to print or emboss the retail price and sales tax separately on every individual piece, creating significant operational challenges for small confectionery items where printing space is limited. 

The revised limit of 250 pieces per pack provides manufacturers with greater flexibility in packaging design while ensuring that consumers still have access to clear pricing and tax information at the point of purchase. 

The FBR’s latest published version of the Sales Tax Act is amended up to June 30, 2026, providing the legal framework for the revised clarification.

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