ISLAMABAD: Federal Board of Revenue (FBR) Tuesday clarified a news item published in a section of local press regarding the adjustment of sales tax rates on petroleum products.
A statement issued by FBR here today said that it has been reported that the rate of sales tax on petroleum product, specially diesel and motor spirit (super petrol) has been increased with effect from September 1, 2016.
In this respect, it is clarified that since January, 2015, in view of falling petroleum prices in the international market, the government has been adjusting sales tax rates on petroleum products to rationalize the revenue stream as well as the consumer prices. This practice was also adopted in many countries to protect the tax revenues which were falling due to linkage with the prices, it added.
In Pakistan, however, public interest was given due priority and as a result Pakistan has the lowest petroleum prices in the region, it added. If per litre impact of sales tax is considered, the present-day sales tax per litre is generally much lower as compared to the level in April 2013.
It further said that sales tax per litre at motor sprit (super) was recorded at Rs. 10.71 per litre in September, 2016 as against Rs. 14.86 per litre in April, 2013.
Meanwhile, sale tax on HSD (diesel) was recorded at Rs 12. 86 per litre during current month as against Rs 19.18 per litres in April, 2013. The government was charging Rs 2.06 per litre sales tax on kerosene oil during the month of September, 2016 as compared to Rs 14.28 of April, 2013. Sales tax on light diesel oil was recorded at Rs 4.64 during current month as compared to the Rs 13.35 of April, 2013.
