Selling products in domestic market: FBR binds manufacturers to get brand registration certificates

ISLAMABAD: The Federal Board of Revenue (FBR) has bound manufacturers of major revenue generation sectors such as tobacco, sugar, fertiliser, cement and beverages to get brand registration certificates for selling their products in the domestic market. This step is aimed at curbing evasion of taxes.

The FBR has been trying to implement a Track and Trace System and litigation was underway at the Sindh High Court and the Islamabad High Court. Till the disposal of these litigations, the FBR has come up with the Brand Registration Certificate in order to stop tax-evading sectors to sell unregistered products into the market. The FBR high-ups were hopeful that the verdict would be announced within one month,

The government inserted Section 40E in the Sales Tax Act, 1990 vide Finance Act, 2021, which empowers the FBR to issue Brand Licensing Certificate to the manufacturers of specified sectors i.e. Tobacco, Sugar, Fertilizer, Cement and Beverages. For this purpose, the FBR has issued a procedure for issuance of Brand Registration Certificate for these sectors vide Sales Tax General Order (STGO) 7/2021 dated 3rd August, 2021.

It has been further notified by the FBR that if any of the manufacturers fails to obtain Brand Registration Certificate from the FBR, he shall not be allowed to sell their unregistered products in the market.

According to the notification, all existing and new manufacturers are required to submit an application to the Project Director (TTS) for issuance of Brand Registration Certificate for all of their products.

For this purpose, each manufacturer shall provide the requisite information required for brand registration. The office of the Project Director, TTS shall scrutinize all the applications and initiate the process of registration of the products as per the notified procedure.