A high-level consultative meeting was held in Islamabad on Saturday by Freedom Gate Prosperity (FGP) to address rising market manipulation and arbitrary grocery inflation. The event saw participation from the Islamabad Chamber of Small Traders and Small Industries (ICSTSI), prominent traders, and major industry stakeholders.
Key attendees included Muhammad Anwar, CEO of FGP; Sheikh Tayyab Saeed, President of ICSTSI; and Sardar Zaheer Ahmad, Senior Vice President, along with senior representatives from both organizations. The coalition unanimously urged the federal government to expand the Third Schedule of the Sales Tax Act, 1990, in the upcoming Federal Budget 2026-27.
The proposed reform calls for the inclusion of daily essential commodities such as cooking oil, milk and dairy items, infant formula, and frozen foods. It also mandates the mandatory printing of retail prices on product packaging. Currently, the federal tax system imposes a cumulative 6.5% tax burden on unregistered retailers, comprising a 4% further tax and a 2.5% advance income tax, to enforce documentation requirements.
Market data presented at the meeting revealed that over 80% of retailers remain outside the formal tax net. Because essential items are excluded from the Third Schedule, they lack standardized, legally binding printed prices. This allows undocumented retailers to apply discretionary markups that disproportionately harm low- and middle-income consumers.
Muhammad Anwar, CEO of FGP, highlighted the urgent need for a structural pivot to protect the public. He stated, “Expanding the Third Schedule is not a plea for corporate tax exemptions; it is a vital structural reform. It mandates transparent on-pack pricing, ensures equitable affordability across all geographies, and permanently eradicates downstream tax evasion by collecting the revenue upfront at the manufacturing stage.”
Representing the trading community, Sheikh Tayyab Saeed, President of ICSTSI, emphasized how the current regulatory approach is distorting the market. He said, “The government’s attempt to force retail documentation through punitive 6.5% taxes has completely missed the mark. Instead of broadening the tax base, it has created severe market distortions and driven up inflation for the common citizen. Hence, expanding the Third Schedule creates a much-needed level playing field.”
The meeting concluded with a joint resolution calling upon the Ministry of Finance, the Federal Board of Revenue (FBR), and the provincial Chief Ministers to recognize on-pack price printing as a fundamental consumer right. The coalition plans to formally submit its policy briefs to the Senate and National Assembly Committees on Finance ahead of the finalization of the 2026-27 budget.
