diff --git a/files/build_templates/sonic_debian_extension.j2 b/files/build_templates/sonic_debian_extension.j2
index 579c165d9ce..6dcb8f9a38b 100644
--- a/files/build_templates/sonic_debian_extension.j2
+++ b/files/build_templates/sonic_debian_extension.j2
@@ -950,8 +950,6 @@ sudo LANG=C DOCKER_HOST="$DOCKER_HOST" chroot $FILESYSTEM_ROOT sonic-package-man
 {% for package in sonic_local_packages.strip().split() -%}
 {% set name, path, set_owner, enabled = package.split('|') -%}
 sudo LANG=C DOCKER_HOST="$DOCKER_HOST" chroot $FILESYSTEM_ROOT sonic-package-manager install --from-tarball {{ path }} {{ get_install_options(set_owner, enabled) }}
-name_repo=$(basename {{name}} .gz)
-sudo LANG=C DOCKER_HOST="$DOCKER_HOST" chroot $FILESYSTEM_ROOT docker tag $name_repo:latest $name_repo:"${SONIC_IMAGE_VERSION}"
 {% endfor -%}
 
 sudo umount $FILESYSTEM_ROOT/target