Government Reduces Sales Tax on Petrol

The government has decreased sales tax on motor spirit from Rs. 16.08 per liter (June 16) to Rs. 15.88 per liter to adjust the price of motor spirit from July 1, 2021, reflecting a decrease of 1.2 percent.

According to the data, sales tax on high-speed diesel oil (HSD) has been increased from Rs. 16.35 per liter (June 15) to Rs. 16.56 per liter, showing an increase of 1.3 percent.

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According to the Finance Division, the government has absorbed the impact of the increase by making adjustments in sales tax and petroleum levy (PL).

Presently, the Federal Board of Revenue (FBR) is charging a standard rate of 17 percent on motor spirit and high-speed diesel oil for this month.

However, the sales tax rate per liter basis has been increased or decreased depending on the price increase or decrease of petroleum products.