LAHORE: The federal government has decided to increase sales tax on petroleum products from 17 percent to 22.
The Federal Board of Revenue has issued a notification in this regard. The FBR was worried due to fall in petroleum rates and was facing dearth of revenue. The mini budget proposal was discussed in a meeting with Finance Minster Ishaq Dar and FBR issued a notification on Tuesday to increase 5 percent sales Tax on petroleum products.
Rs 1.195 trillion target was set by IMF but FBR collected Rs 1.1 trillion till now. The new rates of taxes will be implemented from January 1, 2015.
