ISLAMABAD: The Federal Board of Revenue (FBR) has been authorized to collect the Climate Support Levy (CSL) and Petroleum Development Levy (PDL) on behalf of the Ministry of Petroleum following a fresh notification.
In this regard, the FBR issued S.R.O. 800(I)/2026 on Tuesday, introducing amendments to the Sales Tax Rules, 2006. The changes have been made in Annex L of Form STR-7, which is used for filing monthly sales tax returns.
According to official details, the Climate Support Levy was introduced through the Finance Bill 2025 and came into effect on July 1, 2025. The levy is aimed at addressing environmental and climate-related challenges through fiscal policy measures.
The latest amendments also incorporate STR-7 into the monthly sales tax return system for the collection of the Petroleum Development Levy on behalf of the Petroleum Ministry.
Additionally, the FBR has introduced a Domestic Sale Invoice mechanism to streamline the collection of both the Climate Support Levy and Petroleum Development Levy.
Officials clarified that while the heads of tax collection will remain unchanged, the FBR will now act as the official collecting agent for these levies on behalf of the Petroleum Ministry.
