ISLAMABAD: The government would continue to charge 10 percent reduced rate of sales tax on the Liquefied Petroleum Gas (LPG), as the Federal Board of Revenue’s (FBR) proposal to charge standard rate of 17 percent sales tax on the LPG was dropped under the Tax Laws (Second Amendment) Ordinance, 2021.
Sources told Business Recorder here on Tuesday that under the draft Tax Laws Amendment Bill 2021, the FBR proposed to impose standard rate of 17 percent sales tax on LPG imports and its local supplies from July 1, 2021.
The amendment in the Sales Tax Act, 1990 proposes to omit LPG (Tariff Heading 2711.1910) imports thereof and local supplies of such imported LPG chargeable @10% from serial 58 of Eight Schedule whereby it will be chargeable @17 percent.
Later, the government withdrew the said amendment from the Tax Laws (Second Amendment) Ordinance 2021.
Now, the import and local supply of the LPG would continue to be changed at the reduced rate of 10 percent sales tax.
Copyright Business Recorder, 2021
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