Do you know that the sales tax on the petroleum products has been reduced away with? This notification has been issued by the honorable Supreme Court during the course of hearing held on 5th July, 2018 that was all relating to Suo Motu notice of the increase in petroleum prices as to be directed the Federal Government to reconsider the matter in order to provide all possible relief to the side of the general public. In view with the directions, the matter has been on the whole reconsidered and the Federal Cabinet has decided that sales tax rates be reduced from the range of the 17% to 12% for Motor spirit and Kerosene Oil, from 31% to 24% on High-Speed Diesel and from 17% to 9% on Light Diesel Oil. Federal Government is much sure of the fact that the relief in petroleum prices will not only provide much-needed respite to the masses but also carry out as to reduce the cost of production and hence also give a boost to the economic activity.
Sales Tax On Petroleum Products Reduced
Plus the caretaker government has, on the whole, resulting with absorbed hike in prices of petroleum products through lowering the sales tax rates. The Government has decided as to keep up with the POL prices unchanged for the month of August 2018 just as against the proposals of Oil and Gas Regulatory Authority (OGRA) to hence increase the prices of various products. This decision as to keep up with the prices as to be unchanged for the sake of the months hence resulted in compromising revenue and reduction in sales tax rates.
According to SRO 933 (I)/2018 and reduced sales tax rate to 9.5 percent from 12 percent on top of the supply of petrol. Similarly, the sales tax rate has been also carried out to be reduced on the supply of high-speed diesel to 22 percent from 24 percent. In the same way, the sales tax rate on top of the kerosene oil has been reduced to 6 percent from 12 percent and on light diesel, the rate brought to one percent from nine percent. This act will come about beneficial for the relief to the general public who are facing extreme financial pressure due to inflation and also the depreciation of the rupee against the dollar. As per the details, the interim government has on the whole reduced sales tax on petrol by 2.5% and now the new sales tax on top of the gasoline is 9.5%. In addition, the sales tax on diesel has been reduced on by the range of 2% to 22%, whereas the sales tax on top of the kerosene oil has been slashed by 6% and on light diesel by 8%. It is also to be mentioned that a few days back Oil and Gas Regulatory Authority (OGRA) recommended the government to increase out with the rates of petroleum products by up to PKR 4.
