FBR Orders Cement Manufacturers to Apply Tax Stamps Starting in October

From October 1, 2022, the Federal Board of Revenue (FBR) has warned cement manufacturers not to remove cement bags from production sites, factory premises, or manufacturing plants without the affixation of tax stamps or Unique Identification Marking (UIMs).

It issued Sales Tax General Order (STGO) number 19 of 2022 in this regard on Tuesday to give cement manufacturers a deadline. It has also set deadlines for the tobacco industry and fertilizer manufacturers to apply tax stamps to finished products.

The FBR has already extended the deadline for cigarette manufacturers to affix tax stamps to their tobacco products by June 30, but the industry has yet to fully comply with this deadline.

From July 1, the FBR will confiscate fertilizer bags without affixed tax stamps or UIMs being cleared from production sites, factory premises, or manufacturing plants under STGO No. 15 of 2022.

According to the FBR’s directive to cement manufacturers, no cement bag will be allowed to be removed from the production site, factory premises, or manufacturing plants beginning October 1 without the affixation of tax stamps or UIMs obtained from the FBR’s licensee, M/s AJCL.MITAS/Authentix Consortium.

As per FBR, Section 40C(2) of the Sales Tax Act of 1990, read with Rule 150ZF of the Sales Tax Rules of 2006, requires it to announce the date for the implementation of electronic monitoring of production and sales of goods in the manner prescribed by law on all manufacturing sites of notified sectors.

It has issued the notification with the approval of the FBR Member Inland Revenue.

Ali Imran

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