In the fiscal year 2022-23, the federal government has set a target of collecting Rs. 750 billion from the petroleum development fee.
The former administration established a levy collection target of Rs. 610 billion for the current fiscal year, however it was reduced to Rs. 135 billion in the updated forecasts.
Speaking to a news station about the development, State Minister for Finance Aisha Ghaus Pasha stated that the aim is long-term and that the government would meet it by the end of the year.
The minister stated that the government has no plans to implement the petroleum development levy right now, and that the government’s priority right now is to eliminate the subsidies on petroleum products.
She also stated that the tax might be implemented if oil prices in the international market fall.
It is important to note that there is presently no fee on petroleum goods, which means that if the government decides to collect the levy, the cost of all petroleum products, including gasoline and diesel, might skyrocket.
However, the minister did not disclose whether a promise has been made with the International Monetary Fund (IMF) to collect Rs. 750 billion from the petroleum development charge in fiscal year 2022-23.
The government expects to receive Rs. 200 billion in Gas Infrastructure Development Cess, Rs. 5 billion in LPG Petroleum Levy, Rs. 70 billion in Gas Royalty, Rs. 46 billion in Oil Royalty, and Rs. 40 billion in Natural Gas Development Surcharge.
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