FBR clarifies news about adjustment of sales tax rates on petroleum

209
FBR clarifies news about adjustment of sales tax rates on petroleum

ISLAMABAD, Sep 6 (APP): Federal Board of Revenue (FBR) here on Tuesday clarified a news item published in a section of local press regarding the adjustment of sales tax rates on petroleum products.
A statement issued by FBR here today said that it has been reported that the rate of sales tax on petroleum product, specially diesel and motor spirit (super petrol) has been increased with effect from September 1, 2016.
In this respect, it is clarified that since January, 2015, in view of falling petroleum prices in the international market, the government has been adjusting sales tax rates on petroleum products to rationalize the revenue stream as well as the consumer prices.
This practice was also adopted in many countries to protect the tax revenues which were falling due to linkage with the prices, it added.
In Pakistan, however, public interest was given due priority and as a result Pakistan has the lowest petroleum prices in the region, it added.
If per liter impact of sales tax is considered, the present-day sales tax per liter is generally much lower as compared to the level in April 2013.
It further said that sales tax per liter at motor sprit (super) was recorded at Rs. 10.71 per liter in September, 2016 as against Rs. 14.86 per liter in April, 2013.
Meanwhile, sale tax on HSD (diesel) was recorded at Rs. 12. 86 per liter during current month as against Rs. 19.18 per liters in April, 2013.
The government was charging Rs. 2.06 per liter sales tax on kerosene oil during the month of September, 2016 as compared to Rs. 14.28 of April, 2013.
Sales tax on light diesel oil was recorded at Rs. 4.64 during current month as compared to the Rs. 13.35 of April, 2013.