ISLAMABAD: Federal Board of Revenue (FBR) has significantly reduced the sales tax rates up to 88 percent on supply of petroleum products for five days.
The FBR issued SRO 499(I)/2019 dated April 30, 2019 to announced reduction in sales tax rates on petroleum products.
The government a day earlier announced not to immediately pass on the rise in oil prices to consumers and referred the issue to the Economic Coordination Committee of the Cabinet to decide the petroleum prices for the month of May 2019.
Meanwhile, the government absorbed the rise in petroleum price by reducing the sales tax rates on petroleum products till May 05, 2019.
The FBR amended the SRO 1574(I)/2018 dated December 31, 2018 through the latest notification, under which the sales tax on petrol reduced by 88 percent to 2 percent from 17 percent.
The sales tax rate on High Speed Diesel has been reduced by 23.6 percent to 13 percent from 17 percent.
The FBR reduced the sales tax rate on kerosene oil by 53 percent to 8 percent from previous 17 percent.
Similarly the sales tax rate on light diesel oil has been reduced by 47 percent to 9 percent from 17 percent.