FBR clarifies news about adjustment of sales tax rates on petroleum
A statement issued by FBR here today stated that it has been reported that the pace of sales taxation on petroleum product, especially diesel and motor spirit (super petrol) has been increased with effect from September 1, 2016.
In this regard, it is clarified that since January, 2015, in view of falling petroleum prices in the international marketplace, the government has been adjusting sales tax rates on oil products to justify the revenue stream as well as the consumer prices.
This practice was also adopted in many countries to protect the tax revenues, which were falling due to linkage with the prices, it added.
In Pakistan, however, public interest was given due priority and as a result, Pakistan has the lowest petroleum prices in the region, it added.
If per liter impact of sales tax is considered, the present-day sales tax per liter is generally much lower as compared to the level in April 2013.
It further said that sales tax per liter at motor sprit (super) was recorded at Rs. 10.71 per liter in September, 2016 as against Rs. 14.86 per liter in April, 2013.
Meanwhile, sale tax on HSD (diesel) was recorded at Rs. 12. 86 per liter during current month as against Rs. 19.18 per liters in April, 2013.
The government was charging Rs. 2.06 per liter sales tax on kerosene oil during the month of September, 2016 as compared to Rs. 14.28 of April, 2013.
Sales tax on light diesel oil was recorded at Rs. 4.64 during current month as compared to the Rs. 13.35 of April, 2013.
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