The federal government approved an increase in the petroleum development levy.
According to the sources, 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.
The FBR presented a summary of the increase in the rate of sales tax on HOBC. It was conveyed that the rates of sales tax on POL products were reduced to zero from 1st February 2022, which put pressure on FBR’s efforts to achieve its revenue targets.
Consequently, the ECC has decided to raise the petroleum levy from Rs30 to Rs50 per litre on RON 95 and above with effect from 16th November 2022, which is a luxury item being consumed by wealthy consumers in their expensive vehicles.
The Economic Coordination Committee also approved Technical Supplementary Grants of Rs5 billion for the conduct of the 7th population census.
Remember that, Under the agreement with the IMF, the government has to fetch a revenue of Rs850 billion during the current fiscal by jacking the Petroleum Levy up to Rs50 per litre on petrol and diesel.
On diesel, IFEM has increased by Re0.07 per litre to Rs1.83 from Rs1.76 per litre. Dealer margin on diesel also stands at Rs7 per litre and district margin, including extra margin, stands at Rs3.68 per litre.
Earlier day IMF Director General Assured full Support to Pakistan after the government requested more policy support due to the devastating floods