ISLAMABAD: The government has increased the prices of petroleum products and the Federal Board of Revenue has increased the Sales Tax on high speed diesel to 29.5% and new sales tax amended SRO No 91 (1) 2017 has also been issued. Federal Finance Minister Ishaq Dar has announced Re1.00 per liter increase in the prices of petrol and diesel.
Talking to media, the finance minister has said the prices of kerosene and light diesel will remain same. The government will continue to pay the subsidy on both products. We are striving to keep the prices of petroleum products at minimum level. On the direction of prime minister, the increase in prices of petroleum products has been kept at minimum level.
According to the source of finance ministry, the purpose of increase in petroleum prices was to meet the shortfall in tax revenue. Now the Federal Board of Revenue will face revenue shortfall due to less tax ratio on petroleum products. The one rupee increase is not in the price of petroleum products but it is an increase in the sales tax. The FBR has issued the new sales tax amended SRO No 91 (1) 2017 in this regard and sales tax on high speed diesel has been increased by the 29.5 %.
