The Federal Board of Revenue (FBR) had issued SRO.175 (I)/2015 on 27th February 2015 to change the rate of sales tax on petroleum products to minimize the increase in petroleum prices. The FBR has decreased the sales tax from 27 to 18 percent on the import and local supply of fuels including High Octane (HOBC), Kerosene Oil and Light Diesel. However, the sales tax on high speed diesel oil is raised from 27 percent to 37 percent. This notification was written to take effect from March 1, 2015.
However, we’ve heard no more than this until now. If it was supposed to be effective from 1st March, the fuel prices should have been changed by now. FBR? Y U DO DIS?
The sales tax has been reduced to offset the increase in base price of petroleum products. The “before sales tax” price has increased.