FBR hikes sales tax rates on petroleum products

FBR hikes sales tax rates on petroleum products

ISLAMABAD: Federal Board of Revenue (FBR) has notified increase in sales tax rates on all petroleum products, except on petrol, which was reduced to zero per cent.

The FBR issued SRO 1579(I)/2021 on Tuesday to revise the sales tax rates on petroleum products. Previously, the FBR issued SRO 1450(I)/2021 dated November 11, 2021 to notify the revision in sales tax on petroleum products.

The sales tax on petrol has been cut to zero per cent from 1.43 per cent.

The rate of sales tax on high speed diesel has been enhanced to 7.20 per cent from 6.75 per cent.

The sales tax on supply of kerosene oil has been enhanced to 8.19 per cent from 6.70 per cent.

Similarly, the sales tax rate on light diesel oil has been increased to 0.46 per cent from 0.2 per cent.

The enhancement in sales tax rate shows the government has not passed on the reduction in the prices of international oil. The government on November 30, 2021 announced to keep the prices of petroleum products unchanged for the next fortnight.

READ MORE: Govt. keeps petroleum prices unchanged