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Sales tax imposed on supply of kerosene oil, enhanced on petrol

Sales tax imposed on supply of kerosene oil, enhanced on petrol

ISLAMABAD: The prices of per liter kerosene oil has been increased by 11.7 percent to Rs64.32 per liter with imposition of sales tax at Rs3.64/liter, according to notification issued by Oil and Gas Regulatory Authority (OGRA) on Sunday for the month of January 2018.

The rate of kerosene oil has been increased from Rs57.58/liter, which is maximum ex-depot sales price, which was applicable during December 2017. It is pertinent to mention here that the general sales tax was nil in the maximum sale price. The government for the past several months exempted the supply of kerosene oil from levy of sales tax.

Similarly, the price of petrol has been increased to Rs79.03/liter for the month of January 2018. The price of petrol has been increased by 5.41 percent from the price of Rs74.97/liter applicable during month of December 2017.

With the increase of prices, the impact of sales tax increased to Rs11.48 per liter from previous impact of Rs10.89/liter. The sales tax rate has been automatically increased with the hike of petrol price as FBR fixed the sales tax rate at 17 percent.

In order to apply new sales tax rates, the Federal Board of Revenue (FBR) has also issued SRO 1331(I)/2017.