Pakistan – Sales tax rate on petroleum products

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.

Source: ibfd.org

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