Budget 2024-25, Petroleum levy likely to be raised by 20 rs per liter

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By imty4

Islamabad (Pakistan News online) Federal budget 2024-25 to be presented in parliament on june 12 and there is a possibility of raising the petroleum levy by up to 20 rupees per liter.

According to details, the relief from reduced petroleum product prices may not be passed on to the public in the upcoming fiscal year.

In the federal budget for 2024-25, the government is considering imposing sales tax and increasing the petroleum levy on petroleum products.

Sources indicate that a proposal has been made to impose sales tax on petroleum products in the next fiscal year. Similarly, the levy could be increased from 60 rupees to 80 rupees per liter.

Sources further mentioned that the sales tax on petroleum products is proposed to be increased gradually in the next fiscal year. Currently, the sales tax rate on petroleum products is zero.

According to sources, a development levy of 60 rupees per liter is currently being collected on petrol and diesel. If the sales tax is increased and the levy is raised, the relief will not be passed on to the public.

It is important to note that the government is already collecting a petroleum levy of 60 rupees per liter on both petrol and diesel, which is the maximum allowable limit under the law. During the first nine months ending March 31, the government has collected 720 billion rupees under this heading.

Under commitments made with the International Monetary Fund (IMF), the government has set a target to collect 869 billion rupees from the petroleum levy on petroleum products during the current fiscal year.

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