The Pakistan FBR has lowered the sales tax rate on POL products.

ByShehryar Makhdoom | Published date:
the-fbr-has-lowered-the-sales-tax-rate-on-pol-products

A reduction in the sales tax on gasoline between 6.84 percent to 1.43 percent is effective Nov 11, 2021, according to the FBR.

HSD's sales tax rate has been cut by 10.32 percent to 6.75 percent by a new SRO.1450(I)/2021 was published on Thursday to alter the SRO.57(I)2016, which was released on the same day. It's still 5 to 6.70 percent for Kerosene and 0.20% for light diesel oil in the sales tax.

The Federal Bureau of Revenue (FBR) recently released its biannual analysis, which found that petroleum products accounted for most domestic tax collections. For 2020-21, the FBR found that petroleum products, which account for 34.9 percent of total revenues, grew by 30.1 percent.

Similar to local sales tax, petroleum is the primary source of sales tax collection when imported. There is about a 23% share in the overall sales tax imports. According to the FBR, revenue from POL goods was Rs. 255.7 billion in FY 2020-21, up from Rs. 231.3 billion in the Year 2019-20, a 10.6 percent increase.

Comment