ISLAMABAD: Federal Board of Revenue (FBR) has announced reduction in sales tax rates on supply of petroleum products in order to ensure availability of fuel at lower rates.
The FBR issued SRO 807(I)/2021 dated June 26, 2021 for notifying the reduction in sales tax on petroleum products.
According to the SRO the sales tax rate on kerosene oil has been reduced to 6.7 per cent from 9.15 per cent. Similarly, sales tax on light diesel oil has been reduced to 0.2 percent from 2.74 per cent.
However, the sales tax rates on petrol and high diesel oil has been kept unchanged at 17 per cent.
The government on June 15, 2021 announced increase in prices of petroleum products for next fortnight, which are as follows: MS (Petrol) has been increased by Rs2.13 from Rs108.56 to Rs110.69 per liter, High Speed Diesel was increased by Rs1.79 from Rs110.76 to Rs112.55 per liter, Kerosene (SKO) was increased by Rs1.89 from Rs80.00 to Rs81.89 per liter and Light Diesel Oil was increased by Rs2.03 from Rs77.65 to Rs79.68 per liter.
FBR sources said that the sales tax rate has been reduced because the government had not passed on the actual increase in petroleum products prices to the general public.