An increase in the petroleum development levy has been approved by the federal government. Apparently, the International Monetary Fund ordered the government to take this action, according to sources (IMF).The Economic Coordination Committee (ECC) met in the Finance Division on Friday, with Senator Mohammad Ishaq Dar serving as the meeting’s chairman.
Ahsan Iqbal, the federal minister for planning, development, and special initiatives, Khurram Dastgir Khan, the federal minister for power, MNA and former prime minister Shahid Khaqan Abbasi, minister of state for finance and revenue Aisha Ghous Pasha, minister of state for petroleum Musadik Masood Malik, the SAPM on finance Tariq Bajwa, the SAPM on revenue Tariq Pasha, federal secretaries, the head of the federal board attended the meeting.
A summary of the increase in the rate of sales tax on HOBC was provided by the FBR.The fact that POL items will no longer be subject to sales tax as of February 1, 2022, put strain on FBR’s efforts to meet its income goals.As a result, the ECC has agreed to increase the petroleum levy on RON 95 and above from Rs 30 to Rs 50 per litre with effect from November 16, 2022. This is a luxury good that wealthy people consume in their high-end automobiles.
The ECC also authorised Technical Supplementary Grants for the 7th Population Census in the amount of Rs. 5 billion.In a report on the import premium for high-speed diesel and gas oil that the Ministry of Energy’s Petroleum Division submitted, it was stated that the position of oil marketing companies (OMCs) for the importation of HSD and the country’s uninterrupted supply of HSD was unsustainable.
