IMF seeks increase in petroleum development levy

ISLAMABAD: The International Monetary Fund (IMF) has demanded of Pakistan to jack up the petroleum development levy to meet the target of Rs855 billion collection, ARY News reported on Friday, citing sources.

Pakistan is currently in talks with the IMF mission that arrived in Islamabad on January 30 to discuss the stalled ninth review of the $7 billion Extended Fund Facility (EFF).

The sources aware of the talks said the IMF has suggested the Pakistan government for legislation to jack up petroleum levy over Rs50 per litre to meet the target.

During the talks the government briefed the IMF mission about the imposition of Rs200 taxes under the mini-budget which might be presented before the joint session of Parliament or in the shape of the ordinance in the ongoing month of February, the sources said.

Pakistan’s authorities briefed the IMF mission about their plan to increase non-taxed income by speeding up the privatisation program.

In order to increase the income, the government in the mini-budget has also recommended slapping 3pc flood levy on imported luxury items, the sources said and added 1pc flood levy will be imposed on imported goods, where the duty is zero.

The government has also planned to impose a flood levy on the profit earned by the banks on foreign exchange.