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FBR Press Release

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FBR clarifies adjustment of sales tax rates on petroleum products

It has been reported in various newspapers that the rate of sales tax on petroleum product, specially diesel and motor spirit (super petrol) has been increased with effect from 1st September, 2016. 
In this respect, it is clarified that since January, 2015, in view of falling petroleum prices in the international market, the government has been adjusting sales tax rates on petroleum products to rationalize the revenue stream as well as the consumer prices. This practice was also adopted in many countries to protect the tax revenues which were falling due to linkage with the prices. In Pakistan, however, public interest was given due priority and as a result Pakistan has the lowest petroleum prices in the region. 
If per litre impact of sales tax is considered, the present-day sales tax per litre is generally much lower as compared to the level in April 2013. The comparison is given below:

        Prices per litre (Rs./litre)

Month Motor Spirit (Super) HSD (Diesel) HOBC Kerosene Light Diesel Oil
April, 2013 14.86 15.78 19.18 14.28 13.55
September, 2016 10.71 19.00 12.86 2.06 4.64



Hamid Raza Khan
Secretary (PR)
Sep 06, 2016
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