Government’s Major Decision: Petroleum Levy Collection Authority Transferred to FBR

2 hours ago
Government’s Major Decision: Petroleum Levy Collection Authority Transferred to FBR

Islamabad (Commerce Desk) The federal government has transferred the authority for collecting petroleum-related levies on petroleum products to the Federal Board of Revenue (FBR).

According to officials, the FBR has issued a formal SRO in this regard, under which amendments have been made to the Sales Tax Rules 2006. Under the new system, the FBR will act as an agent of the Ministry of Petroleum and the Petroleum Division for the collection of these levies.

The notification states that changes have also been made to the sales tax return format, and a new Domestic Sales Invoice (DSI) has been introduced. Petrol pumps and registered buyers will be required to provide detailed transaction data for every sale and purchase, including NTN, CNIC number, nature of purchase, quantity, value, and applicable levy rate.

According to FBR officials, the Climate Support Levy (CSL), introduced under the Finance Bill 2025, has been effective from July 1, 2025, and is aimed at generating financial resources to address environmental challenges.

Officials clarified that there has been no fundamental change in the tax collection system; rather, the FBR will only act as a collection agent.

It was further stated that in certain cases, exemptions or zero-rated sales will require reference to relevant SROs and schedules.