ISLAMABAD – The The Federal Board of Revenue have revised the sales tax rates on petroleum products to provide a little relief to citizens following a sharp rise in fuel prices at the international market.
According to an SRO issued by the revenue board, the sales tax on petrol to a nominal 1.43 percent effective from November 11, 2021.
The FBR issued SRO 1450 (I)/2021 for announced reduction in the sales tax rates on petrol and high-speed diesel. The officials reduced the sales tax rates by 73 per cent on petrol, compared with the rates notified on October 7, 2021.
It also slashed the rate of sales tax on high-speed diesel to 6.75 percent from 10.32 percent. However, the sales tax rates on kerosene and light diesel oil (LDO) have been kept unchanged at 6.70 percent and 0.20 percent, respectively.
Last week, the government increased petroleum prices to an all-time high. Under the notification, the petrol was fixed at Rs145.82/litre instead of Rs137.79, showing an increase of Rs8.03. The diesel has also been fixed at Rs142.62/litre, compared with Rs134.48, up Rs8.14.
The ruling party officials claimed that the government absorbed the price shocks through a reduction in the sales tax rates despite all-time high prices at the international level.
