FBR Increases Sales Tax on Petroleum Products

The Federal Board of Revenue (FBR) on Tuesday revised and increased the rates of sales tax on petroleum products. According to the FBR SRO 1(I)/2022, THE sales tax on petrol has been increased from 1.63 percent to 4.77 percent from January 1, 2022. And, the sales tax on high-speed diesel oil has been raised to 9.08 percent from 7.37 percent. Moreover, the sales tax on kerosene has been raised from 8.19 percent to 8.30 percent and on light diesel oil from 0.46 percent to 2.70 percent. The PL (petroleum levy) rate on petrol has been raised from Rs. 13.62 to Rs. 17.62 per liter. The PL rate on High Speed Diesel has also been revised and increased from Rs. 13.14 to Rs. 17.14 per liter. The PL rate on SKO has been hiked to Rs. 9.86 per liter and Light Diesel Oil rate to Rs. 7.66 per liter. The sales tax hike on petroleum products comes four days after the federal government’s announcement of another increase in retail prices of petroleum products. According to a notification issued by the Finance Division late on Friday, the prices of petrol and high-speed diesel (HSD) have gone up by Rs. 4 per liter for the first 15 days of January. The increase means the price of petrol has gone up from Rs. 140.82 per liter to Rs. 144.82 per liter. Similarly, the price of high-speed diesel is now Rs. 141.62 per liter, from the previous price of Rs. 137.62 per liter.