The federal government earlier yesterday increased sales tax on petroleum products by five per cent, effectively depriving consumers of an estimated Rs5 billion worth of relief following the fall of crude oil prices in the international market.
The increase in GST on some petroleum products was announced through a notification issued today by the Federal Board of Revenue (FBR) on the advice of the Finance Ministry.
According to the notification, sales tax will be charged at the rate of 22 instead of 17pc on High-speed Diesel oil, Light Diesel Oil, Kerosene, and Motor spirit including HOBC.
The notification shall take effect from Jan 1, 2015.
Crude oil prices have fallen sharply in the international market since late June.
The measure to increase GST on the petroleum products was taken by the government to partially offset a shortfall in revenue of the FBR after the decline of oil prices in the global market.
