A proposal by the Federal Board of Revenue (FBR) to impose a reduced rate of sales tax on all petroleum products starting on February 1, 2023, has been categorically rejected by Finance Minister Ishaq Dar.
According to sources, the FBR has sent Ishaq Dar, the finance minister, a summary requesting that a lower sales tax be applied to all petroleum items. All petroleum goods would be subject to a 2–5 percent lower sales tax rate, according to the FBR’s proposal. The Finance Minister, however, rejected the FBR’s suggestion.
Petroleum goods are not subject to sales tax as of January 29. On POL goods, the sales tax rate stayed at 0%. The FBR has not thus sent out any notifications. According to additional sources, the FBR wanted to gradually increase the petroleum products sales tax rate.
On Sunday morning, two days before the scheduled bimonthly review, the federal administration pertinently announced a significant rise in the price of petroleum products. The cost of high-speed diesel has also gone up by Rs. 35 per litre in addition to gasoline. The cost of kerosene oil and light diesel oil (LDO) has also gone up by Rs. 18 per litre.
Petrol will now cost Rs. 249.80 per litre, while HSD will cost Rs. 262.80 per litre as a result of the rise. Similar to how light diesel oil will now cost Rs. 187 per litre and kerosene will now cost Rs. 189.83 per litre.
To restart discussions on the stalled 9th review of the $7 billion Extended Fund Facility, the International Monetary Fund (IMF) mission will travel to Pakistan on January 31. (EFF).
NTS Result originally reported last week that the IMF had declined Pakistan’s request to deploy a team to complete the 9th review and had instead instructed the Finance Ministry to conduct the necessary preliminary steps. The PKR fell to an all-time low of 262.6 against the USD after the lender’s unambiguous message, a Rs. 300 billion mini-budget was released, and fuel prices increased as previously reported.