GST rates on POL products lowered

The Federal Board of Revenue (FBR) has decreased sales tax from 26 percent to 22 percent on motor spirit, 50 percent to 47.5 percent on high speed diesel and 30 percent to 22 percent on kerosene from November 1, 2015. The FBR has issued SRO.1070(I)/2015 Saturday. The notification has amended SRO 383(I)/2015 dated 30th April 2015 for reducing sales tax rates on petroleum products. According to the SRO.1070(I)/2015, the rate of sales tax on HOBC has been decreased from 24 percent to 16.5 percent.
Through this SRO, the rate of sales tax on light diesel oil has also been decreased from 29.5 percent to 24 percent. This notification shall take effect on and from November 1, 2015. Following is the text of the SRO.1070(I)/2015 issued here on Saturday: In exercise of the powers conferred by clause (b) of sub-section (2) of section 3 of the Sales Tax Act, 1990, the Federal Government is pleased to direct that the following further amendment shall be made in its Notification No S.R.O. 383(1)/2015, dated the 30th April. 2015, namely: In the aforesaid Notification, for the existing Table, the following shall be Substituted, namely:

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S.No          Description           PCT heading              Rate

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

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1    Motor spirit excluding HOBC    2710.1210     22%  ad valorem

2    HOBC                           2710.1210   16.5%  ad valorem

3    Kerosene                       2710.1911     22%  ad valorem

4    High speed diesel oil          2710.1931   47.5%  ad valorem

5    Light diesel oil               2710.1921     24%  ad valorem

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