In a bid to generate non-tax revenue, Pakistan has recently announced an increase in the petroleum levy, raising it to Rs60 per liter.
(more…)Tag: petroleum levy
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Pakistan Expected to Raise Petrol Prices from July 2023 to Boost Revenue
Pakistan is expected to implement a petrol price hike starting from July 2023, during the fiscal year 2023/2024. The decision stems from the government’s ambitious goal of collecting approximately Rs870 billion in petroleum levies to enhance revenue generation, as outlined in budget documents.
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Pakistan Aims to Generate Rs870 Billion from Petroleum Levy in 2023-24
Despite Challenges, Pakistan Sets Ambitious Revenue Target for Petroleum Levy in the Next Fiscal Year
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Petroleum levy collection soars by 189% to Rs362 billion
The collection of petroleum levy in Pakistan has soared by 189 percent to Rs362.48 billion during first nine months (July – March) 2022-2023 as compared with Rs125.56 billion in corresponding months of the last fiscal year, official data revealed.
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ECC approves raising petroleum levy to Rs50 per liter on RON 95
ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Friday approved increasing petroleum levy to Rs50 per liter on RON 95.
Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided over the meeting of the ECC at Finance Division.
READ MORE: Petroleum sales decrease by 22% in four months of 2022-2023
Federal Board of Revenue (FBR) presented a summary on increase in rate of Sales Tax on HOBC. It was conveyed that the rates of Sales Tax on POL products were reduced to zero from February 01, 2022, that put pressure on FBR’s efforts to achieve its revenue targets.
Therefore, the ECC after deliberation allowed to increase petroleum levy from Rs 30 up to Rs. 50/Liter on RON 95 and above with effect from November 16, 2022, which is a luxury good being consumed by wealthy consumers in expensive vehicles.
READ MORE: K-Electric posts huge losses despite 144% jump in tariff adjustment revenue
Federal Minister of Planning, Development and Special Initiatives Ahsan Iqbal, Federal Minister for Power Khurram Dastgir Khan, Shahid Khaqan Abbasi MNA/ex-PM, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Musadik Masood Malik, SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Pasha, Federal Secretaries, Chairman FBR and other senior officers attended the meeting.
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Ministry of energy (Petroleum Division) submitted a summary on High Speed Diesel/ Gas oil premium and informed that due to difference of premium on import of HSD for importing OMCs and PSO, there is an unsustainable position for importing OMCs and smooth supply of HSD in the country. In order to ensure sustained supply/import security, the ECC after detailed discussion allowed premium on HSD subject to maximum capping at US$ 15/BBL for importing OMCs other than PSO for the months of November and December, 2022.
The ECC also approved Technical Supplementary Grants of Rs. 5 billion for conduct of 7th population census.
READ MORE: Electricity withholding tax not applicable on ATL domestic consumers
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NA approves levy on petroleum products up to Rs50/liter
ISLAMABAD: National Assembly (NA) has approved a levy of Rs50 per liter on each petroleum product.
The assembly allowed the government to include the levy in the prices of petroleum products up to Rs50 per liter of each product.
READ MORE: All tax proposals of IT sector accepted: FBR
The National Assembly passed the Finance Act, 2022 that empowers the government to enforce the laws that were amended through federal budget 2022/2023.
In this regard amendment has been made to Petroleum Products (Petroleum Levy) Ordinance, 1961.
READ MORE: Pakistan’s salaried class unhappy over new tax changes
In this ordinance the fifth schedule has been amended as following:
High Speed Diesel: Rs50/liter
Motor Gasoline (Petrol): Rs50/liter
Superior Kerosene Oil (SKO): Rs50/liter
Light Diesel Oil (LDO): Rs50/liter
READ MORE: Pakistan reduces salary tax slabs to 7 in budget 2022/23
High Octane Blending Component (HOBC): Rs50/liter
E-10 Gasoline: Rs50/liter
Liquefied Petroleum Gas (Produced/extracted in Pakistan): Rs30,000 per metric ton.
The government has estimated a collection of Rs750 billion as petroleum levy during the fiscal year 2022/2023.
READ MORE: Pakistan reduces salary tax slabs to 7 in budget 2022/23
It is worth mentioning that the previous PTI government had not imposed a petroleum levy in order to provide petroleum products at cheaper rates.
However, the current coalition government led by PML-N in its budget 2022/2023 announced on June 10, 2023 estimated collection of Rs750 billion during the current fiscal year.
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Petroleum levy to generate Rs750 billion
ISLAMABAD: The government has estimated a collection of Rs750 billion as petroleum levy during next fiscal year 2022/2023.
It is worth mentioning that the previous PTI government had not imposed a petroleum levy in order to provide petroleum products at cheaper rates.
READ MORE: FBR assigned tax collection target of Rs7 trillion in 2022/2023
However, the current coalition government led by PML-N in its budget 2022/2023 announced on June 10, 2023 estimated collection of Rs750 billion during the next fiscal year.
The government has estimated a collection of Rs135 billion in the current fiscal year.
READ MORE: Budget 2022/2023: Salient features of customs duty act
The present government also estimated an amount of Rs40 billion through natural gas development surcharge during the next fiscal year as compared with existing estimates of Rs30 billion in the outgoing fiscal year.
An amount of Rs70 billion has been estimated to be collected from royalty on natural gas during the next fiscal year as compared with existing estimates of Rs60 billion in the current fiscal year.
READ MORE: Budget 2022/2023: Salient features of sales tax
Under the head of gas infrastructure development cess (GIDC) the government is estimating a collection of Rs200 billion during the next fiscal year as compared with existing Rs25 billion in the current fiscal year.
The government has also estimated a collection of Rs10 billion from windfall levy against crude oil as compared with estimated Rs12 billion in the outgoing fiscal year.
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Petroleum levy collection registers 100 percent increase
ISLAMABAD: The collection of petroleum levy has registered almost 100 percent increase during the first half of the current fiscal year, according to official statistics made available on Saturday.
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