ST ON HOBC REDUCED.
The Federal Board of Revenue (FBR) has reduced sales tax from 21.5 to 20 percent on the High Octane Blending Component (HOBC)-a petroleum product, reflecting a decrease of 1.5 percent from October 1, 2016. According to an S.R.O. 925(1)/2016 issued by the FBR on Friday, sales tax on motor spirit remained unchanged at 20 percent. Sales tax rate on Kerosene would remain the same at 5 percent from October 1. Sales tax on High speed diesel oil has been increased from 35.5 to 36.5 percent and sales tax on Light diesel oil would remain unchanged at 12 percent. Following is the text of the SRO issued on Friday: In exercise of powers conferred by clause (b) of sub-section (2) and sub-section (6) of section 3 of the Sales Tax Act, 1990, the Federal Government is pleased to direct that the following further amendment shall be made in its Notification No.SRO 57(I)/2016 dated 29th January, 2016.