ISLAMABAD: Thegovt once again enhanced the general sales tax on petroleum products by 5 percent, taking GST on oil products to whopping 27 per cent from current 22 per cent, which deprived the consumers of relief following the fall of crude oil prices in the international market.
The government, for the consecutive second month, has increased the GST on petroleum products by 5 per cent. The GST on four products including petrol, high-speed diesel, kerosene oil, light diesel oil and HOBC would now be 27 per cent as against the standard rate of 17 percent.
Defending the move, Finance Minister said that Pakistan has increased the GST on oil prices only twice, adding that other countries like India enhanced the regulatory duties on petroleum products four times due to the tumbling petroleum products prices. The government would generate Rs 28 billion from enhancing GST on petroleum products in remaining months (February to June) of the financial year 2014-2015, said Finance Minister Senator Ishaq Dar while addressing a press conference here. He informed that first enhance in GST made in December would generate Rs 16 billion and second increase made on Saturday would generate Rs 12 billion for the national kitty.
“The government will still face revenue loss of Rs 40 billion during this fiscal year despite enhancing GST twice on the petroleum products”, he informed. The Federal Board of Revenue (FBR) had estimated that reduction in the international oil prices would result in revenue shortfall of Rs 68 billion during year 2014-2015. However, Rs 28 billion would be recovered through enhancing GST on petroleum products, he added.
The finance minister shared the details of the reduction in petroleum products prices announced by Prime Minister Nawaz Shairf after attending the passing out parade of the first batch of Counter Terrorism Force in Lahore. He said that government has reduced the petrol price by Rs 7.99 per liter for the month of February after retaining Rs 2.76 per liter after enhancing GST. The price of High Speed Diesel (HSD) has decreased by Rs 5.62 per liter and government retained 3.18 per liter on it. Kerosene oil price has declined by Rs 10.48 per liter after government retained Rs 2.42 per liter. Light Diesel Oil price went down by Rs 9.56 per liter, as government kept Rs 2.28 per liter. Meanwhile, prices of HOBC have been slashed by Rs 11.82 per liter after government held Rs 3.16 per liter after enhancing GST on it, Ishaq Dar added.
He informed that new petrol prices for the current month of February would be Rs 70.29 per liter as compared to Rs 78.28 per liter of January. High Speed Diesel price would be Rs 80.61 per liter in February as against Rs 86.23 per liter. New kerosene oil prices would be Rs 61.44 per liter in ongoing month as compared to Rs 61.44 per liter. Light Diesel Oil price would be Rs 57.94 from today (Sunday) and HOBC Rs 80.31 per liter as compared to Rs 92.13 of January.
