Sales tax rate on petrol slashed

Sales tax rate on petrol slashed

ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday reduced sales tax to 16.40 per cent ad valorem on supply of petrol.

The FBR issued SRO 860(I)/2021 to reduce the sales tax on petrol.

Through the SRO the sales tax rate on petrol has been reduced to 16.40 per cent ad valorem from 17 per cent.

The sales tax rates on kerosene oil and light diesel are 6.7 per cent and 0.20 per cent, respectively.

The FBR kept the sales tax rate at 17 per cent unchanged for high speed diesel oil.

The rates of sales tax on petroleum products have been reduced so the government absorbs the high prices in the international markets and pass on the lesser effect to the consumers.

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