Govt slashes sales tax on petroleum products
The Federal Board of Revenue (FBR) has reduced sales tax to 16.40 per cent on petrol, reported 24News HD TV channel on Thursday.
The FBR issued a notification to reduce the sales tax on petroleum prices. According to the notification, the sales tax rate on petrol has been reduced to 16.40 percent ad valorem from 17 percent. The sales tax rates on kerosene oil and light diesel are 6.7 percent and 0.20 percent, respectively. The FBR kept the sales tax rate at 17 percent unchanged for high-speed diesel oil.
The rates of sales tax on petroleum products have been reduced so the government absorbs the high prices in the international markets and passes on the lesser effect to the consumers. Earlier on June 10, the government announced a cut in sales tax rates on kerosene oil and light diesel oil in order to absorb the price hike on petroleum products.