Govt likely to increase petroleum levy on IMF demand

ISLAMABAD: The federal government is considering increasing the levy on all petroleum products to fulfil another demand that the International Monetary Fund (IMF) set in the FY-2023-24 budget, ARY News reported on Wednesday.

Sources privy to the matter have informed ARY News that the Ministry of Finance has proposed raising the levy rate by an additional Rs10 per litre to collect around Rs755 billion from this source during the fiscal year 2023-24. The current rate of PDL stands at Rs50 per litre.

The government had set a target of collecting Rs855 billion through the petroleum levy in the current fiscal year, they say.

However, during the first nine months of this fiscal year, the collection only reached Rs362 billion, it added. To increase the petroleum levy, the Ministry of Finance will amend finance bill through parliament.

IMF seeks cut in govt expenditures

Meanwhile, the International Monetary Fund (IMF) in fresh contact with Pakistan has demanded to slash expenditures of the federal and provincial governments, it emerged.

The IMF in pre-budget talks has also demanded to fix the tax revenue target above Rs. 10,000 billion, according to sources.

In virtual talks Pakistan has convinced the lender to move the talks ahead and also requested about the staff level agreement, sources said.

“IMF intending a joint 9th and 10th review of the loan package, but Pakistan wants completing 9th review of the bailout package separately”.

According to sources, the sides also discussed budget figures as the monetary fund advanced its demand to enhance the FBR tax collection to 10,000 billion rupees. It also demanded steps to increase recovery of income tax.

Pakistani negotiators assured the lender of fixing the FBR taxation target at 9,200 billion in the budget.

IMF team also demanded major cut in expenditures of federal and provincial governments and pressed for limiting expenses and subsidy in the next fiscal year’s budget, sources said.