GST or General Sales Tax that applies on all the petroleum based fuel sold in Pakistan will see a revision or outright removal, the government announced.
According to the announcement, GST on petrol, that was 14.5%, has been left unchanged. Meanwhile tax on Kerosene oil and Light Diesel Oil (LDO) has been waived off.
It should be mentioned that the government was collecting a 2% and 2.5% tax on kerosene and light diesel oil respectively. Products like High Speed Diesel (HSD) and regular petrol did not see major revisions.
Initially HSD had 31% GST on it, but it will now be decreased to 25.5%.
Earlier it was announced that the government was going to increase the prices of petroleum-based fuel items. Oil and Gas Regulatory Authority (OGRA) had recommended an increase in prices of fuel ranging from 0.5% to 16%.
The government could adjust the taxes on the fuels to compensate for the change in global crude oil prices. The final decision was to be made in a cabinet meeting, chaired by the Prime Minister Nawaz Sharif.
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