Sales tax on motor spirit up three percent

The Federal Board of Revenue (FBR) has increased sales tax on motor spirit from 20.5 percent, to 23.5 percent, showing an increase of 3 percent from August 1, 2017. According to the SRO.731(I)/2017 issued here on Tuesday, , the FBR has increased sales tax rates on certain petroleum products from August 1, 2017.
Sales tax on high speed diesel oil has been raised from 33.5 percent to 40 percent, reflecting an increase of 6.5 percent. Sales tax on kerosene would continue to remain zero percent during August 2017. As per the SRO, sales tax rate on light diesel oil has been decreased from 1.5 percent to zero percent.
Following is the text of the SRO issued here on Tuesday:- SRO 713(I)/2017.- In exercise of powers conferred by clause (b) of sub-section (2) and sub-section (6) of section 3 of the Sales Tax Act, 1990, the board is pleased to direct that the following further amendment shall be made from the 1st August, 2017, in its notification No. SRO 57(I)/2016 dated the 29th January, 2016, namely:In the aforesaid notification, for the existing table, the following shall be substituted, namely:-

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S.NO. Description                   PCT heading       Rate

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(1)       (2)                           (3)            (4)

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1     Motor spirit excluding HOBC    2710.1210    23.5% ad valorem

2     High speed diesel oil          2710.1931    40.0% ad valorem

3     Kerosene                       2710.1911    0% ad valorem

4     Light diesel oil               2710.1921    0% ad valorem

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