The Federal Board of Revenue (FBR) has decreased sales tax from 27 to 18 percent on the import and local supply of motor spirit including High Octane Blending Component (HOBC); Kerosene oil and light diesel and raised sales tax from 27 percent to 37 percent on high speed diesel oil from March 1. The FBR has issued SRO.175 (I)/2015 here on Monday to change sales tax rates to minimise the increase in petroleum prices.

Through the SRO, motor spirit including HOBC (PCT Heading 2710.1210) would now be subjected to sales tax at the rate of 18 percent ad valorem; Kerosene (PCT Heading 2710.1911) 18 percent ad valorem and Light Diesel oil (PCT Heading 2710.1921) has been subjected to sales tax at 18 percent ad valorem. High speed diesel oil (PCT Heading 2710.1931) would now be subjected to sales tax at the rate of 37 percent ad valorem.

Following is the text of the notification issued here on Monday: SRO. 175(I)/2015.- In exercise of powers conferred by clause (b) of sub-section (2) of Section 3 of the Sales Tax Act, 1990, and in supersession of its Notification No SRO 1152(I)/2014 dated the 30th December, 2014, the Federal Government is pleased to direct that sales tax shall be charged on import and supplies of the goods specified in column (2) of the Table below at the rates specified in column (4) thereof, namely:-

This notification shall take effect from March 1, 2015.

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S. No  Description                  PCT heading             Rate

(1)           (2)                      (3)                   (4)

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1     Motor spirit including HOBC   2710.1210     18% ad valorem

2     Kerosene                      2710.1911     18% ad valorem

3     Light diesel oil              2710.1921     18% ad valorem

4     High speed diesel oil         2710.1931     37% ad valorem

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Copyright Business Recorder, 2015