ISLAMABAD: The Federal Board of Revenue has increased sales tax rate on petrol by 29 percent.
The FBR hiked the sales tax rate on petrol through SRO 292(I)/2017 for raising revenue collection during the last two months of current fiscal year.
The sales tax on petrol has been increased to 20 percent on ad valorem basis for the month of May 2017 as compared with previous sales tax rate of 15.5 percent.
Similarly, the sales tax on high diesel oil has been increased to 33.5 percent for the month of May 2017 as compared with previous rate of 29.5 percent, showing 13.55 percent growth.
The sales tax rates on other POL products are remained unchanged. The FBR sources said that the increase in sales tax would help the revenue authority to avoid shortfall in revenue collection.
