Karachi, November 16, 2023 –The citizens in Pakistan are set to continue enjoying a sales tax holiday on the purchase of petroleum products throughout the second half of November 2023 in a move of the government aimed at providing relief to the masses amidst a global economic downturn.
The government, responding to the fall in international markets, recently announced a reduction in the prices of petroleum products. However, in a notable decision, the sales tax rate was maintained at zero percent, signaling the government’s commitment to alleviating the financial burden on citizens in the face of rising inflation.
While the standard sales tax rate in Pakistan stands at 18 percent, the decision to keep the sales tax at zero percent on petroleum products underscores the government’s dedication to shielding citizens from the economic challenges posed by inflation.
As a result of the government’s initiative, the price of petrol has experienced a significant decline, dropping by Rs 2.04 per liter. The new price of petrol now stands at Rs 281.34 per liter, providing welcome relief to consumers at the fuel pump.
Analysts at Arif Habib Limited highlight that both the Petroleum Development Levy (PDL) and sales tax on petrol have remained unchanged, standing at Rs 60.00 per liter and zero percent, respectively. This stability in taxation aims to ensure a consistent level of relief for consumers during these challenging economic times.
In a similar vein, the price of High-Speed Diesel (HSD) has witnessed a noteworthy decrease of Rs 6.47 per liter, reflecting a 2.1 percent reduction. The revised price of HSD is now Rs 296.71 per liter, offering further respite to consumers reliant on diesel fuel.
The analysts further note that the Petroleum Development Levy and sales tax on High-Speed Diesel have also remained unchanged at Rs 60.00 per liter and zero percent, respectively. This strategic decision by the government is expected to have a positive impact on the purchasing power of consumers and stimulate economic activity.
By extending the sales tax holiday on petroleum products, the government aims not only to provide immediate relief to citizens but also to stimulate economic growth. This measure is anticipated to have a positive impact on various sectors, as reduced fuel prices can translate into lower transportation costs and, subsequently, decreased prices for goods and services.
As the government continues to implement measures to navigate economic challenges, the sales tax holiday on petroleum products stands out as a tangible step towards supporting the well-being of Pakistani citizens and fostering economic stability. The decision to keep sales tax at zero percent reflects a commitment to prioritize citizens’ interests during these challenging times, reinforcing the government’s role as a partner in the economic well-being of the nation.
