The FBR had to amend S.R.O. 57(I)/2016 (sales tax on petroleum products) through a notification S.R.O. 557 (I)/2021 on Monday.
The sales tax on Kerosene oil has been reduced from 17 percent to 15.44 percent on Kerosene oil and from 17 percent to 7.56 percent on Light diesel oil.
The report added that the additional burden on the import bill would also add to fiscal challenges as the government has already lowered the petroleum levy to Rs13 per litre to maintain petroleum prices at current levels.