ISLAMABAD, May 5, 2026 – The Federal Board of Revenue (FBR) has made it mandatory for registered taxpayers to declare petroleum development levy and climate support levy details in monthly sales tax returns.
The requirement has been introduced through SRO 800(I)/2026, under which amendments have been made to the Sales Tax Rules, 2006.
Mandatory Reporting in Annexure-L
According to the notification, taxpayers must now provide complete information regarding the collection and deduction of petroleum levy and climate support levy in Annexure-L of the sales tax return.
This includes detailed reporting of levy amounts associated with petroleum product transactions.
Invoice-Level Data Requirements
The FBR has also directed that domestic sales invoices must include key information such as:
• Name of the registered person
• Particulars of the buyer
• Province of sale origin
• Relevant documentation
• Applicable tax period
Officials said the move is aimed at enhancing transparency and strengthening compliance within the petroleum sector.
Improving Documentation and Compliance
FBR officials noted that the initiative will help streamline petroleum sales across the country and ensure proper documentation of petroleum levy and climate support levy collections.
The government currently generates significant revenue through petroleum levies on the sale of petroleum products, making improved reporting essential for fiscal management.
Strengthening Revenue Monitoring
The mandatory disclosure is expected to improve monitoring of levy collections and reduce discrepancies in reporting, contributing to better revenue administration.
Authorities believe the step will support efforts to broaden the tax base and enhance the efficiency of Pakistan’s tax system.