ISLAMABAD: The Federal Board of Revenue has increased the Sales Tax rates from 3 to 6.5 percent on the petroleum products. FBR Chief Automation and Sales Tax Abdul Hameed Memon issued an amended SRO No. 713(1) 2017 on the 1st of August in this regard.
According to the SRO, Federal Board of Revenue has increased the Sales Tax on Motor Spirit Excluding HOBC 20.5 percent to 23.5 percent and on high speed diesel from 33.5 to 40 percent. The rates of Sales Tax on kerosene oil and light diesel oil will remain the same.
Informed sources have told Customs Today that Oil and Gas Regulatory Authority has recommended a cut in the petroleum products due to reduction in oil prices in the international market but government has decided that the benefit of cut in petroleum prices at international level will not be passed on to the public. Rather than reducing the oil prices government has increased the Sales Tax rates.
