Over Rs472b collected under petroleum levy in six months

ISLAMABAD: The federal government has collected more than Rs472 billion in petroleum levy in first six months of the current fiscal year and committed to gather Rs920 billion under the head in the whole fiscal year (July 2023-June 2024), ARY News reported, citing sources. 

The sources privy to the development said that the federal government has so far collected more than Rs472 billion in the head of petroleum levy during first six months of the current fiscal year (July 2023 to December 2023).

The government charges at least Rs60 per litre petroleum tax and diesel. Initially, the government had budgeted Rs869 billion petroleum levy for the current fiscal year but now it is eying Rs920 billion

During the last fiscal year (July 2022-June 2023), Rs580 billion was collected in the head of petroleum levy.

Sources in the Petroleum Division said that under the commitments made with the International Monetary Fund (IMF), the government had budgeted Rs869 billion petroleum levy but is hoping the collection to go beyond Rs920bn by the end of June 2024.

Currently, a levy of Rs60 per liter of petrol is being collected. Sources in the Petroleum Division said that a levy of Rs60 per liter is also imposed on high speed diesel.

Read More: Pakistan ‘assures’ IMF to increase petroleum levy

Earlier in December 2023, Pakistan has reportedly assured the IMF to increase petroleum levy in FY2024-25 as Islamabad is planning to take a fresh loan programme.

Citing MEPF document, sources within the finance ministry said Pakistan has assured IMF to jack up petroleum levy to Rs1,065 billion in FY2024-25, while the current levy target is likely to be revised from Rs869 billion to Rs918 bln. The revised target can be achieved with the increase in the consumption of petroleum products.

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