Islamabad - The consumers in Pakistan are currently paying 11.76 percent higher General Sales Tax (GST) on High Speed Diesel (HSD) as compared to April 2013.
The figures are not restricted to HSD only, as the consumers are also paying 2.14 percent higher GST on petrol and 2.85 percent higher GST on High Octane Blended Component (HOBC).
In its clarification about GST on petroleum products, the Federal Board of Revenue (FBR) has claimed that if per litre impact of sales tax is taken into account, the present-day sales tax is generally much lower as compared to what it was in April 2013.
But the claim has not been substantiated by the figures provided by the FBR regarding three major petroleum (POL) products such as HSD, petrol and HOBC.
In April 2013, the price of HSD per litre was Rs108.59; of petrol Rs102.03 per litre, HOBC was Rs136.15 per litre; Kerosene was Rs98.26 per litre while the Light Diesel Oil was Rs93.28 per litre.
Now, in September 2016, the price of per litre HSD is Rs72.52; price of petrol is Rs64.27; HOBC is Rs72.68 per litre; Kerosene Oil costs Rs43.25 per litre while Light Speed Diesel is sold at Rs43.35.
In April 2013, GST on HSD, as per the FBR claim, was 14.53 percent or Rs15.78 per litre. In September 2016, diesel prices are Rs72.52; almost Rs36.07 less than what the rates were in April 2013 i e Rs108.59.
The government is now charging Rs19 per litre GST on HSD, which is around 26.19 percent.
Similarly, as per claim of the FBR, in April 2013 the consumers were paying Rs14.86 per litre or Rs 14.52 percent GST on petrol. At that time, petrol was priced at Rs102.03 per litre, which has now decreased to Rs64.27 per litre.
In September 2016, consumers are being charged Rs10.70 per litre or 16.66 percent GST on petrol.
Similarly, as per claim of the FBR, in April 2013 the consumers were charged Rs19.18 per litre or 14.8 percent GST on HOBC.
They are now paying Rs12.86 or 17.69 percent GST on the HOBC. Then HOBC was sold at Rs136.15 per litre, which has now come down to Rs72.68 per litre. The GST on HOBC is around 2.85 percent higher than April 2013.
However GST on two petroleum products such as Kerosene and Light Diesel Oil has considerably decreased as compared to April 2013.
In April 2013, the consumers were paying Rs14.28 per litre or 14.53 percent GST on Kerosene Oil, which has now reduced to Rs2.06 per litre or 4.76 percent.
In April 2013, the price of Kerosene was Rs98.26 per litre, which has now come down to Rs43.25 per litre.
Similarly, on Light Diesel Oil (LDO), the consumers were paying Rs13.55 per litre or 14.52 percent GST in April 2013. Now they are paying Rs4.64 per litre or 10.70 percent on the product.
It is worth-mentioning here that the HSD sales are highest across the country; averaging at 600,000 tonnes per month; petrol consumption is around 400,000 tonnes per month; that of Kerosene is less than 10,000 tonnes and HOBC 6,000 tonnes.
According to the SRO issued by the FBR on August 31, the government is charging 35.5 percent GST on HSD; 21.5 percent on HOBC; 20 percent on petrol; 12 percent on LDO and 5 percent on Kerosene oil.