FBR reduces sales tax on petroleum products

ISLAMABAD: The Federal Board of Revenue (FBR) has reduced sales tax on petroleum products with effect from November 1.

According to an SRO 1011(1)/2016 issued by the FBR, sales tax on HOBC has been reduced from 20 to 17 percent. The revenue authority has also decreased ST on motor spirit from 20 to 16.5 percent, reflecting a decrease of 3.5 percent.

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The Board, exercising the powers conferred by clause (b) of sub-section (2) and sub-section (6) of section 3 of the Sales Tax Act, 1990, reduced sales tax rate on kerosene from five to two percent. Sales tax on high speed diesel oil has been decreased from 36.5 to 33 percent and sales tax on light diesel oil has been reduced from 12 to two percent.

S. NO.       Description                  PCT heading                 Rate

1.       Motor spirit excluding HOBC       2710.1210      16.5% ad valorem

2.       HOBC                              2710.1210        17% ad valorem

3.       Kerosene                          2710.1911         2% ad valorem

4.       High speed diesel oil             2710.1931        33% ad valorem

5.       Light diesel oil                  2710.1921         2% ad valorem