The General authority of Zakat and Tax informed that the standard Value Added Tax (VAT) of five percent will be applied to purchasing petrol and diesel.
The confirmation was stated in a reply to an online question whether there would be a VAT rate for petrol.
“The VAT rate of five percent for petrol will be applied starting January 1, 2018,” GAZT said.
Expected New Fuel Price
Petrol 91 – 0.788 (old price: 0.75)
Petrol 95 – 0.945 (old price: 0.90)
Diesel – 0.473 (old price: 0.45)
Ministry already announced a gradual subsidy cut on fuel, previously some sources were reporting by November fuel price will hike by 80%. Finance minister said earlier of this month some financial reforms may postpone for few years. But it is not clear hike in fuel price postpone for few years or not.