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Govt to Impose Sales Tax on Import and Local Supply of Crude Oil

by faree
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The government has decided to impose a 17 percent sales tax on the import and local supply of petroleum crude oil and sugar beet to generate maximum revenue at the import stage and local supplies from 1 July 2021.

Sources told Propakistani that these revenue generation measures have been made part of the Finance Bill 2021. At present, the import of petroleum crude oil is exempt from the sales tax and is zero-rated.

The government will withdraw the sales tax exemption and will impose a 17 percent sales tax at the import stage as well as local supplies. On the sales tax side, this is a major revenue generation measure for the budget 2021-22.


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The sales tax exemption available on the import and local supply of edible oils and vegetable ghee, including cooking oil, will be withdrawn. However, only a 17 percent sales tax or 17 percent excise duty will be charged on edible oils and vegetable ghee, including cooking oil, to avoid duplication of taxes.

The government will abolish the five percent excise duty (FED) on locally manufactured juices, and will impose a 17 percent sales tax on the import of fruit juices (fresh, frozen, or preserved, but excluding bottled, canned, or packaged ones).


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The sales tax exemption available to the aviation sector/shipping industry will be withdrawn by imposing a 17 percent sales tax on certain items/supplies.

Sources revealed that the government has also decided to impose a 17 percent sales tax on the import of several dairy products.

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