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FBR reduces sales tax on POL products

FBR reduces sales tax on POL products

ISLAMABAD: The Federal Board of Revenue (FBR) has reduced sales tax on different petroleum products from January 1.

According to an SRO.1180(I)/2016 issued by the FBR, sales tax on speed diesel oil, kerosene and light diesel oil have been reduced, while ST on motor spirit remains unchanged at 14.5 percent.

Sales tax rate on kerosene has been reduced from two percent to zero percent from January 1. Sales tax on high speed diesel oil has been decreased from 31 to 25.5 percent, reflecting a decrease of 5.5 percent.

The tax rates for both the POL products have been reduced from two percent and 2.5 percent respectively. The reduction in sales tax rates has been witnessed for last several months after government decision not to pass on the hike in prices of petroleum products despite increased prices in international markets.

The sales tax rate on high speed diesel oil has also been reduced to 25.5 percent from 31 percent. However, the rate has been maintained on motor spirit excluding HOBC at 14.5 percent for the first month of year 2017.