Federal Board of Revenue (FBR) will continue to charge 15.5 per cent sales tax on motor spirit as compared to standard rate of 17 per cent from April 1, 2017. According to an SRO 223(1)/2017 issued by the FBR here on Friday, sales tax on kerosene would remain at zero per cent from April 1, 2017. Sales tax on high speed diesel oil has been decreased from 30 per cent to 29.5 per cent.

Sales tax on light diesel oil would remain at zero percent under the notification. Following is the text of the SRO issued here on Friday: SRO 223(1)/2017.- In exercise of the powers conferred by clause (b) of subsection (2) and sub-section (6) of section 3 of the Sales Tax Act, 1990, the federal government is pleased to direct that the following further amendment shall be made from the 1st April, 2017, in its Notification No SRO 57(1)/2016, dated January 29, 2016, namely:- In the aforesaid notification, for the existing table, the following shall be substituted, namely:-

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S.No.  Description                  PCT heading                Rate

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

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1.     Motor spirit excluding HOBC   2710.1210     15.5% ad valorem

2.     Kerosene                      2710.1911        0% ad valorem

3.     High speed diesel oil         2710.1931     29.5% ad valorem

4.     Light diesel oil              2710.1921        0% ad valorem

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Copyright Business Recorder, 2017