Fueling the Economy: Pakistan Aims to Skyrocket Petroleum Levy Target to PKR920 Billion

Government Decides Against Lowering Fuel Prices Despite Exceeding Petroleum Levy Target by 367%

Despite exceeding expectations and collecting 367% more in petroleum levies during the first quarter, authorities in Pakistan have decided against lowering fuel prices. This decision comes as the country grapples with ongoing inflationary pressures. The petroleum tax rate will remain at PKR60 per liter.

In addition to this, the government has revised its GIDC (Gas Infrastructure Development Cess) revenue goal downwards by PKR10 billion to PKR30 billion. The GIDC statute was annulled by the Supreme Court, leading to legal hurdles. As a result, only PKR80 billion has been collected out of a total accrual of PKR416 billion, leaving approximately PKR337 billion outstanding.

The Federal Board of Revenue (FBR) has maintained its tax revenue target at PKR9.415 trillion for the fiscal year. However, individual tax targets have been adjusted in response to the impact of import compression. Income tax goals have been increased by PKR346 billion, while projections for sales tax, customs duties, and federal excise duty have collectively been reduced by PKR347 billion. The FBR aims to compensate for diminished import-stage revenues with heightened domestic taxation efforts.

Meanwhile, Pakistan’s Roshan Digital Account has experienced significant external financial engagement. In October alone, there was an inflow of $6.9 billion, indicating continued international investment interest despite domestic fiscal adjustments.

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Martin Reid

Martin Reid

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