FBR Reduce GST On Petroleum Products

Web Desk — The Federal Board of Revenue has announced a lower rate of general sales tax on petroleum products to maintain competitive prices for consumers.

According to a sales tax SRO 183(I) of 2022 released on Thursday, the lowest GST rates were notified to pass the minimum increase onto consumers. GST is charged at a standard rate of 17 percent.

In accordance with 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 amendments be made [by] Jan 16, 2022, in its notification no. SRO 57(I)/2016, dated Jan 29, 2016,” the notification said.

GST rates have been lowered to 0.79 percent on petrol, 3.17 percent on high-speed diesel (HSD), 5.30 percent on kerosene, and 0 percent on light diesel oil (LDO).

Previous rates were 2.5pc on petrol, 5.44pc on HSD, 8.30pc on kerosene, and 2.7pc on LDO.

Due to inflationary pressures, the government delayed the implementation of an additional petroleum tax for a fortnight on Jan 31, keeping ex-depot prices of petroleum products unchanged.