ISLAMABAD: The federal government has increased GST rate on all major petroleum products from 25.5 percent to 45 percent.
The highest increase was witnessed in the GST rate of High Speed Diesel (HSD) which was raised from 36.5 percent to 45 percent.
According to the FBR notification, the GST rate on motor spirit was surged to 25.5 percent from 20 percent, on HOBC to 24 percent, on kerosene to 30 percent from 20 percent and on Light Diesel Oil to 29.5 percent from 20 percent. The GST rate for HSD was increased to 45 percent for September 2015.
The GST rate on petroleum products was increased to enhance revenue collection and achieve the annual target. This year FBR is struggling to collect Rs3104 billion revenue against the last year’s collection of Rs2588 billion.
In first two months of the current fiscal year, the FBR has achieved a nominal growth indicating that the tax machinery will be heading towards revenue shortfall during the current fiscal year. FBR has so far collected Rs324 billion during first two months of 2015-16 against Rs312.861 billion in the same period of last fiscal year, reflecting an increase of Rs11.139 billion.
