Despite drop in international prices, petroleum prices in Pakistan to witness significant increase in coming days
The Federal Board of Revenue (FBR) has estimated to collect Rs. 80-90 billion in the remaining period of (2022-23) by imposing a 17 percent sales tax on petroleum products.
The decision would be taken by Finance Minister Ishaq Dar to allow the FBR to issue a notification to impose a 17 percent sales tax on all petroleum products.
The FBR’s work revealed that the FBR can generate additional revenue of Rs. 80-90 billion through this measure. The revenue generation measure would reduce the number of new taxation measures after charging a standard rate of sales tax on POL products.
Budget markers informed late Monday night that the FBR continued deliberations the whole day to impose a sales tax or increase sales tax/excise duty on beverages, and cigarettes and withdrawal of sales tax exemption on the import of inputs used by the export sectors.
The FBR has repeatedly proposed the imposition of the sales tax on POL products, but the proposal was rejected by Finance Minister Ishaq Dar.
Recently, the Economic Coordination Committee (ECC) of the Cabinet had deferred the Federal Board of Revenue’s proposal seeking the imposition of a 17 percent sales tax on the High Octane Blending Component (HOBC) and RON-97.