ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday clarified the news about adjustment of sales tax rates on petroleum products.
The FBR-issued statement said that the rate of sales tax on petroleum product – especially diesel and super petrol – has been increased with effect from September 1, 2016.
The board clarified that since January of 2015 – in view of the falling petroleum prices in the international market – the government adjusted the sales tax rates on petroleum products to rationalise the revenue stream as well as the consumer prices.
The same practice was also adopted in several other countries to protect the tax revenues which were falling due to linkage with the prices, the statement said and added that Pakistan has the lowest petroleum prices in the region. The current sales tax per litre is much lower than those of April 2013 as the sales tax per litre on motor sprit (super) was recorded at Rs 10.71 in September, 2016 as against April, 2013’s Rs 14.86.
Meanwhile, the sales tax on diesel was recorded at Rs 12.86 per litre in the current month against Rs 19.18 of April, 2013. The government was charging Rs 2.06 sales tax per litre on kerosene oil – during September, 2016 – as compared to Rs 14.28 of April, 2013.