The new sales tax rates on petroleum products have became effective from May 5 (Sunday) and would continue till May 31 until a revised notification has been issued by the Federal Board of Revenue (FBR). According to the SRO.507 issued by the FBR, the standard rate of sales tax would be applicable on high speed diesel oil, Kerosene, light diesel oil. However, motor spirit would be subjected to lower rate of 12 percent sales tax.

From May 5, sales tax on high speed diesel oil has been increased from 13 percent to 17 percent; Kerosene from 8 percent to 17 percent and sales tax on light diesel oil has been increased from 9 percent to 17 percent. Sales tax on motor spirit has been increased from 2 percent to 12 percent. Sources said that the FBR will continue to charge 12 percent sales tax on motor spirit till issuance of a new notification.

Copyright Business Recorder, 2019