The International Monetary Fund (IMF) received assurances from the federal government that a hike in the petrol levy will implement in the upcoming fiscal year (FY25).
Petrol Levy Expected To Increase in FY25
Moreover, according to sources, the planned charge on petroleum items expected to increase significantly to Rs. 1,065 billion.
According to officials in the Finance Ministry, as this year’s collection expected to exceed the existing target.
The previously agreed-upon levy target of Rs. 869 billion could likely to amend upwards to Rs. 918 billion in the current financial year (FY24).
According to sources, increasing the consumption of petroleum products in the remaining months of FY24 is essential to meeting the revised target of Rs. 918 billion.
However, the government has pushed by the IMF to increase the tax for FY24.
Memorandum of Economic and Financial Program (MEFP)
Both sides support raising the petrol levy aim as part of the Memorandum of Economic and Financial Program (MEFP) text, according to sources.
Furthermore, anticipating future developments, it appears that the per-liter petroleum product tax would rise in FY25.
However, it is anticipated that the Ministry of Finance will collaborate with the IMF to execute these modifications, in keeping with the common objectives stated in the draft MEFP.
To read our blog on “ECC authorizes boosting petroleum levy on Hi-Octane Fuel,” click here.
