The federal government on Tuesday imposed 2.5 per cent of the sales tax on petrol.
According to the issued notification, the sales tax of 5.44 per cent has been imposed on diesel.
The sales tax rate on kerosene has been increased to 8.3 per cent and on light diesel to 2.7 per cent. Under the sales tax notification, the price of petroleum products will remain stable till January 31.
Earlier on Jan 16, the taxes, duties, margin and levies of Rs31.57 were imposed on the per liter prices of petroleum products.
The burden of taxes, duties and levies on the prices of petroleum products started bothering the people. Taxes, duties, margins and levies were being collected at Rs 31.50 per liter on diesel while the ex-refinery price of petrol is Rs 116.26 per liter.
The price of petrol has been fixed at Rs147.83 per liter, the ex-refinery price of high speed diesel has been fixed at Rs113.12 per liter, the price of high speed diesel has been fixed at Rs144.62 per liter for the public. Dealers’ margin of Rs4.90 is being charged
According to the sources, the Distributor margin on petrol is Rs3.68, IFEM on petrol is Rs4.21 per liter, levy on petrol is Rs17.62 while the sales tax is Rs1.16 per liter.
The dealers’ margin is Rs4.13 per liter on high speed diesel, distributor margin is Rs3.68 per liter on high speed diesel, IFEM Rs2.12 per liter on high speed diesel, the levy on high speed diesel is Rs 17.13 and sales tax of Rs 4.44 per liter has been imposed.
The government on jacked up the price of petrol by Rs 3.01 per litre with immediate effect.
According to a statement issued by the Finance Ministry, the government absorbed the oil price-hike in the international market and decided to make partial increase in the prices of petroleum products in order to provide relief to the end consumers.
The petroleum products were showing fourth straight weekly gain and witnessed an increase of 6.2 percent just in last week in the international market, presently, at the highest level since last year.
The statement said, the existing Sales Tax rate and Petroleum Levy on various petroleum products in Pakistan were much below than the budgeted targets.
It said, against the recommendations of Oil and Gas Regulatory Authority (OGRA) for increase of Rs 5.52 per liter in the petrol and Rs 6.19 per liter in High Speed Diesel, the prime minister had directed to absorb the international prices through further cut in sales tax from last fortnight.
According to a notification issued in this regard, the new price of petrol will be Rs 147.83 per litre.
The prices of high-speed diesel (HSD) was increased by Rs3 per liter and will now cost Rs144.62 per liter.
The price of kerosene oil was also increased by Rs3 per liter to Rs116.48 per liter.
In addition, light diesel oil will cost Rs3.33 more and will thus be priced at Rs114.54 per liter.