SOHAIL SARFRAZ

ISLAMABAD: The Federal Board of Revenue (FBR) has decided to decrease sales tax from 37 percent to 32 percent on high speed diesel oil from April 1, it is learnt.

However, the sales tax rate on the remaining POL products would remain unchanged.

It is learnt that the FBR will issue a notification on Wednesday (April 1). So far, no notification on the revision of sales tax on POL products has been officially released by the FBR Tuesday.

At present, 18 percent sales tax is applicable on the import and local supply of motor spirit including High Octane Blending Component (HOBC); kerosene oil and light diesel. Through the SRO.175(I)2015 dated Feb 27, motor spirit including HOBC (PCT Heading 2710.1210) would be subjected to sales tax at the rate of 18 percent ad valorem; Kerosene (PCT Heading 2710.1911) 18 percent ad valorem and Light Diesel Oil (PCT Heading 2710.1921) has been subjected to sales tax at 18 percent ad valorem. High speed diesel oil (PCT Heading 2710.1931) would now be subjected to sales tax at the rate of 32 percent ad valorem.