For the upcoming budget of financial year (FY) 2017-18, the Federal Board of Revenue has suggested to increase the sales tax rate on Liquefied Natural Gas (LNG) and other petroleum products. This move comes amidst the fact that taxes on petroleum products have yielded the maximum revenue to the FBR and the authority wants it to continue.
As per the suggestion put forward by the FBR standard sales tax rates on high speed diesel (HSD) and motor spirit oil should be increased from the current 17pc to 20pc in the next year’s budget. And it has further said that the sales tax rate on LNG should be increased from the current 5pc to 20pc in the upcoming budget. No sales tax rate increases have been suggested for either light diesel oil or kerosene oil.
The tax collection target for FY 2017-18 has been set to Rs 3.887t by the FBR and according to officials the Ministry of Finance wants to set the target to over Rs4t. Almost 17pc of the total revenue generated by the FBR comes solely from petroleum products.