Pakistan Shares Plan with IMF to Boost Petroleum Levy Collection

The Pakistani government has presented a plan to the International Monetary Fund (IMF) aimed at enhancing the collection of taxes through the petroleum levy. The proposal outlines the target of collecting Rs1,065 billion during the fiscal year 2024-25, marking a substantial increase of Rs196 billion compared to the previous fiscal year (FY2023-24).

For the ongoing fiscal year, Pakistan aims to collect Rs918 billion through the petroleum levy, indicating a Rs49 billion surplus over the set target of Rs869 billion. Currently, the government imposes a Rs60 per litre levy on both petrol and diesel.

In the first quarter of the current fiscal year, the federal government has already received Rs222 billion from petroleum levy collection. The proposed plan reflects the government's commitment to bolster revenue from the petroleum sector, contributing to its fiscal targets and economic stability.