Govt increases petroleum levy to placate IMF

ISLAMABAD: The federal government on Sunday increased the Petroleum Development Levy (PDL) to Rs 60 on petroleum products to fulfil International Monetary Fund (IMF) demands to clinch a much-delayed rescue package, ARY News reported.

In a last-ditch effort to clinch a stalled IMF bailout, the government introduced a number of changes to its budget for the fiscal year 2024 including amendments to petroleum ordinance.

Addressing the NA session, Finance Minister announced that petroleum levy has been increased from Rs50 to Rs60 per litre on petroleum products.

At present, the maximum limit of charging petroleum development levy (PDL) on petrol and diesel is Rs50 per litre.

It is pertinent to mention here that the National Assembly on Sunday passed the Finance Bill 2023-2024, giving the go-ahead to the budgetary proposals for the upcoming financial year.

The bill with a total outlay of Rs14,480 billion was moved by Finance Minister Ishaq Dar in the house.

The House passed the federal budget with the revised targets to appease the International Monetary Fund (IMF) for the revival of the stalled loan programme. According to the amendments, the target for tax collection has been revised to Rs 9,415 billion from 9,200 billion.

Rupees Rs801 billion have been allocated for the payments of pension against the earlier allocation of Rs761 billion.

According to the Finance Bill, the provinces will get Rs5,390 billion under National Finance Commission (NFC) Award.