FBR slashes tax rate on petrol sale

FBR slashes tax rate on petrol sale

ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday reduced rate of sales tax on supply of petrol (Motor Spirit).

The revenue body issued SRO 1072(I)/2021 to make change in sales tax rate on supply of petrol.

According to the notification the sales tax rate on supply of petrol has been reduced to 10.54 per cent. The FBR brought down the sales tax rate from 10.77 per cent. Previously, the revenue body notified the sales tax rate on petroleum products through SRO 937(I)/2021 dated July 26, 2021.

The uniform rate of sales tax is 17 per cent. However, the government has reduced the rate of sales tax on various petroleum products in order provide relief to the masses.

Despite providing relief to general public through reduced rate of sales tax, the government increased the prices of various petroleum products with effect from August 16, 2021.

The government has increased the prices of kerosene oil and Light Diesel Oil (LDO) for next fortnight effective from August 16, 2021.

The prices of kerosene oil have been increased by Rs0.81 per liter, from Rs87.49 to Rs 88.30.

Likewise, the prices of Light Diesel Oil (LDO) have been increased by Rs1.10 per liter from Rs84.67 to Rs85.77.

However, the government kept prices of petrol and diesel unchanged with effective form August 16 for next fortnight.

According to the latest notification, the FBR has kept sales tax rates at reduced level for other petroleum products. However, sales tax rate on high speed diesel is remained at 17 per cent.

The sales tax rate on supply of kerosene oil is 6.70 per cent and on supply of light diesel oil is 0.20 per cent.

Leave a Reply

You have to agree to the comment policy.