ISLAMABAD: The Khyber Pakhtunkhwa government has opposed the imposition of service tax on petroleum products that would increase the oil prices in the province by Rs500 per ton.
A KP govt official said that Sindh and Punjab were collecting big chunk of services tax, but there was no mechanism of who and where the tax would be collected.
All the provinces, except Balochistan, have levied the sales tax on the inter-city transportation or carriage of goods by road or through pipeline or conduit.
The provinces are charging 17 percent tax on the services. “For example, an oil tanker being charged two rupees per litre oil is paying 34 paisa tax at the rate of 17 percent, which is deducted from two rupees earning,” the official explained.
