ISLAMABAD: Federal government has changed the sales tax rates on petroleum products instead of increase in actual prices and issued new SRO No 125 (1) 2017 in this regard.
Government has increased a sales tax 0.5 percent on diesel and 1.0 percent on petrol. The main reason of behind this decision is to fill the gap of short fall in revenue collection.
Federal Finance Minister Ishaq Dar had announced increase in the petroleum prices, Rs1 and 71 paisa in motor spirit (petrol) and Rs1 and 52 paisa for one month from 1st to 31st March 2017. The new price of petrol will be Rs73 and diesel Rs82 per liter.
Additional Secretary Revenue Division and Member Inland Revenue Policy Dr. Muhammad Iqbal last night has issued a sales tax notification in this regard.
According to the notification government has made further amendment trough notification no. SRO 57(1) 2016 dated 29 Jan 2016 and changed the rates of sales tax on petrol and diesel. The new sales tax rate will apply from 1st March 2017, sales tax on petrol has increased14.5 percent to 15.5 percent and on diesel 29.5 percent to 30 percent per liter.
