LAHORE: Federal Government cut oil prices while the Federal Board of Revenue increased sales tax rate on petroleum products.
Prime Minister Nawaz Sharif slashed oil prices while addressing a passing out parade of Counter Terrorism Force. He declared Rs 70.29 per liter price of petrol price with reduction of Rs 7.99 per as the old price was 78.28 per liter.
Addressing press conference, PM said that petrol was being reduced by Rs 7.99 per liter, High Octane Blending Component (HBOC) Rs 11.82 per liter, Kerosene oil Rs 10.48 per liter, light diesel Rs 9.56 per liter and high diesel oil Rs 5.62 per liter. With the new reduction in petrol prices, petrol will now be cheaper than Compressed Natural Gas (CNG).
On the other hand, Federal Board of Revenue has increased the sales tax rate over petroleum from 22 percent to 27 percent. Experts said that FBR has taken this step to overcome the revenue shortfall which it was facing after high cut in oil prices. They said that public will not enjoy the reduction in oil prices completely after the imposition of five percent sales tax more on petroleum.
As per notification, “ in exercise of the powers conferred by clause (b) of sub-section (2) of section 3 of the Sales Tax Act, 1990, the Federal Government is pleased to direct that the following amendment shall be made in its Notification No SRO 1152(I)/2014, dated 30th December, 2014.
