Thursday, 28 March 2024
Trending
Sales Tax Rate on Petrol Reduced
Petrol Price in Pakistan

Rate of Sales Tax on Petrol Reduced

The Federal Board of Revenue (FBR) has reduced the sales tax rate on Petrol from 6.84 percent to 1.43 percent from November 11, 2021.

According to a notification issued by the FBR here on Thursday, the sales tax rate on high-speed diesel oil (HSD) has been reduced from 10.32 percent to 6.75 percent. Sales tax on kerosene and light diesel oil remained unchanged at 6.70 percent and 0.20 percent, respectively.

The Federal Board of Revenue (FBR) has reduced the sales tax on petrol to a nominal 1.43 per cent effective from November 11, 2021.

The sales tax rate has been reduced from 6.84 per cent to provide relief to the masses against a sharp rise in the prices of petroleum products in the international market. The FBR issued SRO 1450 (I)/2021 for announced reduction in the sales tax rates on petrol and high-speed diesel. The tax authority reduced the sales tax rates by 73 per cent on petrol, compared with the rates notified on October 7, 2021. The revenue body also reduced the rate of sales tax on high-speed diesel to 6.75 per cent from 10.32 per cent. However, the sales tax rates on kerosene and light diesel oil (LDO) have been kept unchanged at 6.70 per cent and 0.20 per cent, respectively.

See also  FBR imposed penalties on real estate agents for not implementing Anti-money laundering regime

The revenue body has already imposed a reduced rate of sales tax on petroleum products, as the normal sales tax rate is 17 per cent. The government on November 4, 2021 notified increased petroleum prices, which are now at an all-time high. Under the notification, the petrol was fixed at Rs145.82/litre instead of Rs137.79, showing an increase of Rs8.03. The HSD has been fixed at Rs142.62/litre, compared with Rs134.48, up Rs8.14.

The price of kerosene was set at Rs116.53/litre from Rs110.26, up Rs6.27. Likewise, the rate of light diesel oil (LDO) increased to Rs114.07/litre from Rs108.26, showing an increase of Rs5.72. According to the government authorities, despite the all-time high prices, the government had absorbed the price shocks through reduction in the sales tax rates.

tax accounting services top tax consultants lahore pakistan
Ads:
Tax.net.pk - Your Tax Experts and Consultants

Welcome to Tax.net.pk

Providing Expert Tax Services for Individuals and Businesses

About Us

At Tax.net.pk, we are dedicated to providing comprehensive tax solutions tailored to meet the needs of individuals and businesses. With years of experience in the industry, our team of tax experts is equipped to handle various tax matters, including tax planning, preparation of tax returns, and compliance.

We strive to stay up-to-date with the latest tax laws and regulations, ensuring that our clients receive accurate and reliable advice. Our commitment to client satisfaction and our in-depth knowledge of the tax landscape make us the trusted choice for all your tax-related needs.

Contact Us

For inquiries or to schedule a consultation, please reach out to us: