ISLAMABAD: The Federal Board of Revenue (FBR) has met revenue shortfall up to Rs 70 to 80 billion since last December due to the government’s act of not increasing the prices of petroleum prices in the local market despite the surge in PoL prices in international markets. There was Rs14.70 sales tax on per liter petrol in 2013 which has now been reduced by the FBR.
A well placed source at Federal Board of Revenue (FBR) told Customs Today that the government had lowered the rates of taxes on petroleum products for the first time in tax history of the country as no previous government ever dared to take such action in the past. The current government had reduced the rate of taxes on kerosein oil and light diesel to provide relief to the masses.
According to the source finance ministry increased the prices of petroleum projects in the country as per summary received from Oil and Gas Regulatory Authority (OGRA) which used to move summary to the government on fortnightly basis. On Sunday, the government increased the prices of petroleum prices.
According to the source the government had not increased the prices of kerosine oil and light diesel oil since December 01 and this decision was taken to provide relief to the poor segment of society, however; the government had to bear loss of Rs 8.25 billion in last 45 days. Moreover, the source said that PoL prices had increased by Rs 40 to 45% in the international market in 2016.
It is pertinent to note here that on Sunday, the government announced the prices of petroleum products for the period starting from 16th January 2017 till end of January. As per announcement FBR will bear a revenue loss of approximately Rs. 2.75 billion as for not passing on the actual increase in petroleum products’ prices to the people of Pakistan.
