Rs. 750 Billion Petroleum Levy Target Could Make Petrol and Diesel Costlier

The federal government has set a target to collect Rs. 750 billion on the petroleum development levy in the next fiscal year 2022-23. The previous government had set a levy collection target of Rs. 610 billion. However, in the revised estimates, it was brought down to Rs. 135 billion.

Minister for Finance Aisha Ghaus Pasha said the government has no plan to immediately impose the petroleum development levy. She added that the focus is to remove the subsidies on petroleum products. The minister said the target is to achieve by the end of the year.

Finance Minister Arun Jaitley has said that the government may impose a levy on petroleum products, including petrol and diesel, from next year. The levy could also be imposed if oil prices decline in the international market, she said during her maiden speech at the World Economic Forum in Switzerland.

The government is projected to collect Rs. 750 billion on account of petroleum development levy in the next fiscal year 2022-23, Finance Minister Arun Jaitley has said. However, the minister did not confirm whether a commitment had been made with the International Monetary Fund (IMF).