On 31 August 2016, the government issued a notification regarding revised sales tax rates on the import and supply of petroleum products by implementing SRO 806(I)/2016. The revised rates, effective from 1 September 2016, are as follows:
- 20% ad valorem on motor spirits (petrol) excluding HOBC (high octane blending component);
- 21.5% ad valorem on HOBC;
- 5% ad valorem on kerosene;
- 35.5% ad valorem on high speed diesel oil; and
- 12% ad valorem on light diesel oil.
The government increased the sales tax rate on four petroleum products to generate revenue from the consumers, as follows:
- from 17% to 20% on motor spirits (petrol) excluding HOBC;
- from 17% to 21.5% on HOBC;
- from 28% to 35.5% on high speed diesel oil;
- from 8.5% to 12% on light diesel oil.