FBR will charge 15.5 percent ST on motor spirit

The Federal Board of Revenue (FBR) will charge 15.5 percent sales tax on motor spirit as compared to standard rate of 17 percent from March 1, 2017. According to an SRO 125(I)/2017 issued here on Tuesday, sales tax on Kerosene would remain at zero percent from March 1, 2017. Sales tax on high speed diesel oil has been increased from 29.5 percent to 30 percent.
Sales tax on light diesel oil would remain at zero percent under the notification. Following is the text of the SRO issued here on Tuesday: S.R.O. 125(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 March, 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:

================================================================

S.No           Description          PCT heading             Rate

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

================================================================

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   30.0% Ad valorem

4.   Light diesel oil               2710.1921     0% Ad valorem"

================================================================