The federal government has approved an increase in the Petroleum development levy, Sources said the government made this decision at the behest of the International Monetary Fund (IMF).
Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided over the meeting of the Economic Coordination Committee (ECC) at the Finance Division, on Friday.
Ahsan Iqbal, the federal minister for planning, development, and special initiatives, Khurram Dastgir Khan, the minister of power, MNA and former prime minister Shahid Khaqan Abbasi, the minister of state for finance and revenue, Aisha Ghous Pasha, the minister of state for petroleum, Musadik Masood Malik, the SAPM on finance, Tariq Bajwa, the SAPM on revenue, federal secretaries, the head of the federal board.
A summary of the increase in the rate of sales tax on HOBC was provided by the FBR. The fact that POL items will no longer be subject to sales tax as of February 1, 2022, put a strain on FBR’s efforts to meet its income goals. As a result, the ECC has agreed to increase the petroleum levy on RON 95 and above from Rs 30 to Rs 50 per litre with effect from November 16, 2022. This is a luxury item that wealthy people consume in their high-end vehicles.
The ECC also approved Technical Supplementary Grants of Rs5 billion for the conduct of the 7th population census.
In a report on the import premium for high-speed diesel and gas oil that the Ministry of Energy’s Petroleum Division submitted, it was stated that the position of oil marketing companies (OMCs) for the importation of HSD and the country’s uninterrupted supply of HSD was unsustainable.
The ECC granted a premium on HSD subject to a maximum limit of $15/BBL for importing OMCs other than PSO for the months of November and December 2022 following extensive deliberation to ensure continuous supply/import security.
According to the terms of the deal with the IMF, the government must increase the petroleum levy on gasoline and diesel to Rs50 per litre in order to generate Rs850 billion in revenue during the current fiscal year.