The Federal Board of Revenue has notified of a reduction in the General Sales Tax (GST) on Petroleum Products in order to pass minimum increase to the consumers.
According to the details, the FBR released a Sales Tax SRO 183(I) of 2022 on Thursday notifying a reduction of 1.71 percent on petrol, followed by a 2.27 percent reduction on high-speed diesel (HSD), while reducing the GST by 3 percent on kerosene oil. Meanwhile, there will be no GST implemented on light diesel oil (LDO).
The new GST on petrol will be 0.79 percent, followed by 3.17 percent on high-speed diesel (HSD), 5.30 percent on kerosene and zero percent on light diesel oil (LDO).
It is pertinent to mention that previous rate of General Sales Tax (GST) on petrol was 2.5 percent and high-speed diesel (HSD) was charged 5.44 percent GST, while kerosene and light diesel oil (LDO) had an applied GST of 8.30 and 2.7 percent, respectively.
Meanwhile, the Government has also reduced the rate of petroleum levy in order to absorb the international oil prices, which have peaked at $90 per barrel in the international market. This is the highest price for petroleum products internationally since 2014.