ISLAMABAD: The federal government has reduced sales tax on high speed diesel from 30% to 29.5% from April 1 (today) while other POL products would be subjected to sales tax on previous rates with no change.
The Federal Board of Revenue (FBR) has issued SRO 223(1)/2017 to change the rates of sales tax on POL products. Under the sales tax regime, there is no change in the sales tax rate on petrol. The FBR will collect 15.5% sales tax on motor spirit during April. In March, the FBR was charging the same rate of 15.5% sales tax on this POL item.
The government increased the prices of petrol and high speed diesel (HSD) by Rs1 per litre with immediate effect.
“The prices of light diesel and kerosene will remain unchanged to provide relief to consumers,” Finance Minister Ishaq Dar said while talking to the media in Dubai. “The government will provide a subsidy of Rs3 billion on petroleum products,” Dar added.
