ISLAMABAD: The Federal Board of Revenue (FBR) has reduced sales tax from 17 percent to 15.44 percent on Kerosene oil and from 17 percent to 7.56 percent on Light diesel oil from May 1, 2021.
The FBR has amended SRO 57(I)/2016 through a notification SRO 557 (I)/2021 dated May 9, 2021.
According to the notification, the standard rate of 17 percent would remain applicable on motor spirit and high speed diesel oil from May 1.
The federal government had kept the prices of petroleum products unchanged for first half of May ahead of Eidul Fitr. The cumulative revenue impact of the decision will be Rs 4.8 billion as the implementation of this proposal requires an adjustment in the rates of petroleum levy (PL) on all petroleum products and a reduction in sales tax as well in case of kerosene oil (SKO) and light diesel oil (LDO). The government was not charging any PL on SKO and LDO.
The government reduced rate of PL on petrol to Rs 6.39 per litre from Rs 11.23 per litre. The GST on petrol, however, remained unchanged at Rs 15.77 per litre notified for second quarter of April.
The government took a downward revision of PL on SKO for first half of May. The rate of PL on SKO reduced to zero from Rs 3.51 per litre and GST was also reduced to Rs 10.70 per litre from Rs 11.62 per litre.
Copyright Business Recorder, 2021
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