The Federal Board of Revenue (FBR) will charge 17 percent sales tax on motor spirit from October 1, 2017. According to the SRO No. 984 (I)/2017 issued here on Saturday, the FBR has revised sales tax rates on certain petroleum products from October 1, 2017. Sales tax on high speed diesel oil has been increased from 30 percent to 31 percent. Sales tax on kerosene would continue to remain zero percent during October 2017.

As per the SRO, sales tax rate on light diesel oil would be charged at the rate of zero percent. Following is the text of the SRO issued here on Saturday: S.R.O. 984(1)/2017.- In exercise of the powers conferred by clause (b) of sub-section (2) and sub-section (6) of section 3 of the Sales Tax Act, 1990, the Board is pleased to direct that the following further amendment shall be made from the 1st October, 2017, in its Notification No. S.R.O.57(1)/2016, dated the 29th January, 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

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

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1.      Motor Spirit excluding HOBC      2710.2010      17% Ad valorem

2.      High speed diesel oil            2710.1931      31% Ad valorem

3.      Kerosene                         2710.1911       0% Ad valorem

4.      Light diesel oil                 2710.1921       0% Ad valorem

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