The Federal Board of Revenue (FBR) has maintained a sales tax rate of 10.54 percent on petrol from September 18, 2021.
The FBR issued an SRO.1225(I)/2021 to amend SRO.57(I)/2016 on Monday. In August 2021, the sales tax rate on petrol was 10.54 percent which has been maintained in September. The increase in prices of petroleum products in September 2021 has also affected the general sales tax (GST) rate on a per liter basis.
According to the FBR’s notification, the sales tax rate on high-speed diesel has been reduced from 17 percent to 11.64 percent. The sales tax on Kerosene has been maintained at 6.70 percent, whereas the sales tax on Light Diesel Oil would remain at 0.20 percent.
It is important to mention here that the federal government had announced a massive increase, up to Rs. 5.92 per liter, in the ex-depot prices of all petroleum products with effect from September 16.
In a fortnightly review of petroleum products for the second half of September, the price of petrol has been increased by Rs. 5.00 per liter. The new price of petrol is Rs. 123.30 per liter, which was Rs. 118.30 per liter or a 4.2 percent increase. The cost of supply of Pakistan State Oil (PSO) has increased to Rs. 95.41 liter from Rs. 94.38 per liter. The PL rate has also revised upward to Rs. 5.62 per liter from Rs. 2.11 per liter. The price increase also affects the GST rate, which increased to Rs. 11.76 per liter from Rs. 11.28 per liter in the first half of September.
The ex-depot price of High-Speed Diesel (HSD) has also been increased by Rs. 5.01 per liter. The new price is Rs. 120.04 per liter from Rs. 115.03 per liter or 4.3 percent.
The price of kerosene oil (SKO) is also increased by Rs. 5.46 per liter from Rs. 86.80 per liter to Rs. 92.26 per liter or 6.2 percent. The government has maintained the rate of PL maintained at Rs. 2.06 per liter. However, increased the prescribed price from Rs. 77.92 per liter to Rs. 83.05 per liter. The price increase has also increased GST from Rs. 5.45 per liter to Rs. 5.79 per liter.
The price of light diesel oil (LDO) is also raised to Rs. 90.69 per liter from Rs. 84.77 per liter, translating into an Rs. 5.92 per liter or a 6.9 percent increased in LDO rate.