ISLAMABAD: The federal government on Wednesday reduced sales tax on petroleum products by up to 5 per cent.

In a notification issued by the Finance Ministry, the additional secretary concerned said that 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 reduce the tax on the petroleum products.

According to the notification, the sales tax on kerosene oil has been reduced from 15.44 to 10.07 per cent, while the tax on light diesel has also been reduced to 3.67 per cent from 7.56 per cent. The sales tax on petrol and high-speed diesel, however, remained unchanged at 17 per cent.


The Federal Board of Revenue has decided to collect Rs2,506 under the General Sales Tax (GST) during the upcoming financial year, FY21-22.

The revenue target set by the tax watchdog for the incoming financial year eyes over 30 per cent growth in the sales tax revenue compared to the outgoing financial year. In FY21-22, FBR says it would collect Rs6.61 billion in sales tax on products.

The FBR had set Rs1,925 billion as its sales tax target in FY20-21 and it only managed to collect Rs1,415 billion in the July-March period. In FY19-20, the FBR had collected Rs1,250 billion in the July-March period.


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