Downward revision of sales tax on petroleum products
The honourable Supreme Court during the course of hearing held on 5th July, 2018 relating to suo motu notice of increase in petroleum prices directed the Federal Government to reconsider the matter in order to provide all possible relief to the general public.
In view of the directions of the honourable Court, the matter has been reconsidered and the Federal Cabinet has decided that sales tax rates be reduced from 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 confident that the relief in petroleum prices will not only provide much needed respite to the masses but also reduce the cost of production and give a boost to the economic activity.
The reduction in prices of petroleum products will be effective from 12:00 midnight.
Hamid Raza Khan
Jul 07, 2018