The Federal Board of Revenue has trimmed the sales tax on petrol and high speed diesel effective June 1, 2017 following the government’s decision to cut the price of both the products. According to the notification of the FBR, sales tax on petrol has been cut by 0.5 percent to 19.5 percent and on high speed diesel it has been reduced by 1 percent to 33.5 percent.
The sales tax on kerosene and light diesel remained pegged at zero percent. The government Wednesday the cut petrol price by Rs 1.20 to Rs 72.80 per liter and high speed diesel by Rs 1.60 to Rs 81.40 per liter. The government since reduction in global crude oil price has been passing the benefit while retaining the some of the amount to cushion revenue collection.
Had the government kept the petroleum product prices on the higher side and not passed the full benefit of the international crude oil price, revenue collection during the current fiscal year would be improved by Rs 20 billion to Rs 30 billion.