In order to ensure availability of fuel at lower rates, the Federal Board of Revenue (FBR) has announced reduction in sales tax rates on supply of some petroleum products. However, the sales tax rates on petrol and high speed diesel (HSD) has been kept unchanged at 17 percent. According to the people familiar with the development, the sales tax rate on petrol and high diesel oil has not been reduced because the government had not passed on the actual increase in petroleum products prices to the general public. The FBR has issued SRO 807(I)/2021 in this regard to notify the reduction in sales tax on different petroleum products. According to the SRO, the sales tax rate on kerosene oil has been reduced to 6.7 percent from 9.15 percent. Similarly, sales tax on light diesel oil has been reduced to 0.2 percent from 2.74 percent. This is the second time in a month when the federal government has notified lowering taxation on petroleum products. On June 09, the federal government notified lowering sales tax on petroleum products. The government on June 15, 2021 announced increase in prices of petroleum products for next fortnight, which are as follows: MS (Petrol) has been increased by Rs2.13 from Rs108.56 to Rs110.69 per litre, High Speed Diesel was increased by Rs1.79 from Rs110.76 to Rs112.55 per litre, price of kerosene oil was increased by Rs1.89 from Rs80.00 to Rs81.89 per litre and light diesel oil was increased by Rs2.03 from Rs77.65 to Rs79.68 per litre.