Islamabad (Staff Report): The government announced that General Sales Tax (GST) that applies on all the petroleum based fuel sold in Pakistan will see a revision or outright removal.
It is to mention that the government was collecting a 2% and 2.5% tax on kerosene and light diesel oil (LDO) respectively. Products like High Speed Diesel (HSD) and regular petrol did not see major revisions.
Initially HSD had 31% GST on it, but it will now be decreased to 25.5%.
The previous announcement informed that the government was going to increase the prices of petroleum-based fuel items.
Oil and Gas Regulatory Authority (OGRA) had recommended an increase in prices of fuel ranging from 0.5% to 16%.
The final decision was to be made in a cabinet meeting, chaired by the Prime Minister Nawaz Sharif and the government could adjust the taxes on the fuels to compensate for the change in global crude oil prices.