FBR reduces sales tax rate on petrol to 10.77%

FBR reduces sales tax rate on petrol to 10.77%

ISLAMABAD: Federal Board of Revenue (FBR) on Monday reduced the sales tax rate to 10.77 per cent on supply of petrol. The tax authority reduced the sales tax rate from 16.40 per cent.

The FBR issued SRO 937 (I)/2021 to notify the reduction in sales tax rate on petrol.

The federal government on July 15, 2021 announced an increase of Rs5.4 to Rs118.09 in price of petrol from Rs112.69. Similarly, the prices of high speed diesel increased by Rs2.54 per liter, from Rs113.99 to Rs116.53. Kerosene oil price increased by Rs1.39 per liter, from Rs85.75 to Rs87.14. Price of light diesel oil also increased by Rs1.27 from Rs83.40 per liter to Rs84.67 per liter.

The sales tax rates on other petroleum products have been kept unchanged as per the notification issued on July 06, 2021.

The sales tax rates are: High Speed Diesel, 17 per cent; Kerosene 6.7 per cent and Light Diesel Oil at 0.2 per cent.