ST on motor spirit reduced

The Federal Board of Revenue (FBR) has reduced sales tax (with effect from December 1, 2016) on motor spirit from 16.5 to 14.5 percent, reflecting a decrease of 2 percent. According to an SRO 1127(1)/2016 issued by the FBR here on Wednesday, sales tax on kerosene remained unchanged at 2 percent.
Sales tax on high speed diesel oil has been decreased from 33 to 31 percent and sales tax on light diesel oil has been increased from 2 to 2.5 percent. Following is the text of the SRO issued here on Wednesday: SRO 1127(1)/2016. In exercise of the powers conferred by clause (b) of sub-section (2) and sub-section (6) of section 3 of the Sales Tax Act, 1990, the federal government is pleased to direct that the following further amendment shall be made from the 1st December 2016, in its notification No SRO 57(1)/2016, dated the 29th January, 2015, namely: In the aforesaid Notification, for the existing table, the following shall be substituted, namely:

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 "TABLE

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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      14.5% ad valorem

2.    Kerosene                             2710.1911         2% ad valorem

3.    High speed diesel oil                2710.1931        31% ad valorem

4.    Light diesel oil                     27101921       2.5% ad valorem"

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