FBR reduces GST on petroleum products; prices remain same

ISLAMABAD: The Federal Board of Revenue had announced reducing the general sales tax (GST) rate on petroleum goods to keep consumer pricing competitive.

GST is charged at a standard rate of 17 per cent.

"In exercise of the powers conferred by clause (b) of sub-section (2) of section 3 of the Sales Tax Act, 1990, the federal government is pleased to direct that the following further amendment be made [with effect from] January 16, 2022, in accordance with its notification no. SRO 57(I)/2016, dated January 29, 2016," the notification stated.

GST on petrol had been reduced to 0.79 per cent, 3.17 per cent on high-speed diesel (HSD), 5.30 per cent on kerosene, and 0 per cent on light diesel oil (LDO).

Previously, the cost was 2.5 per cent on petrol, 5.44 per cent on HSD, 8.30 per cent on kerosene, and 2.7 per cent on LDO.

The government had the flexibility of eliminating or partially eliminating the GST on petroleum items in order to rein in skyrocketing oil prices.