ISLAMABAD: Federal Board of Revenue (FBR) has updated the rate of income tax on sale of certain petroleum products for tax year 2021 (July 01, 2020 to June 30, 2021).
The FBR issued Income Tax Ordinance, 2001 (updated up to June 30, 2020) after incorporating amendments brought through Finance Act, 2020.
The FBR also updated the rate of income tax on sale of certain petroleum products under 236HA of the Income Tax Ordinance, 2001.
The rate of collection of tax under section 236HA shall be 0.5 percent of ex-depot sale price.
Following is the text of Section 236HA:
236HA. Tax on sale of certain petroleum products.—(1) Every person selling petroleum products to a petrol pump operator or distributer, where such operator or distributer is not allowed a commission or discount, shall collect advance tax on ex-depot sale price of such products at the rate specified in Division XVA of PartIV of the First schedule.
(2) The tax deductible under sub-section (1) shall be a final tax on the income arising from the sale of petroleum products to which sub-section (1) applies.