Federal Board of Revenue has reduced the sales tax on petrol and diesel effective August 5, 2017 aimed to cut the product prices to be sold consumers.
The government has reduced the petrol and diesel price effective August 6, 2017 after slashing the sales tax. Federal minister of finance Ishaq Dar on Saturday made an announcement trimming of petrol and diesel prices by Rs 1.80 and Rs 2.50 per liter respectively. The new price has been Rs 69.50 per liter and Rs 77.40 per liter respectively.
Following the reduction the sales tax on petrol has been curtailed to 3 percent to 20.5 percent and on diesel by 4.5 percent to 35.5 percent. The government on July 31, 2017 due to unavoidable circumstance, the petrol price remained unchanged which boosted the sales tax on petrol from 20.5 percent 23.5 percent while on diesel it has been increased to 40 percent from 33.5 percent.