The Federal Board of Revenue (FBR) has issued S.R.O. 1126(I)/2025, mandating a minimum retail price (MRP) for cement from July 1, 2025, to prevent under‑invoicing and ensure accurate sales tax payment. The price is based on average retail rates in Karachi, Lahore, Faisalabad, Peshawar, Rawalpindi, and Islamabad, reduced by Rs 25 to facilitate tax calculation.

The average cement prices used for setting the MRP are sourced from the Pakistan Bureau of Statistics (PBS) for the previous month, and the notification replaces the earlier framework introduced in April 2025.

By fixing a standardized MRP benchmark, the FBR aims to eliminate under-reporting of cement prices, align taxable value with real market rates, and promote fairness in the construction sector’s tax contributions. This measure enhances compliance and minimizes revenue leakage across major urban markets.