The federal government has set a target to collect Rs. 750 billion on account of the petroleum development levy in the next fiscal year 2022-23.
For the outgoing fiscal year, 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.
Commenting on the development, State Minister for Finance Aisha Ghaus Pasha while speaking to a news channel said that the target is future looking and the government will achieve the target by the end of the year.
The minister said that the government has no plan to immediately impose the petroleum development levy and added for now the focus is to remove the subsidies being provided on petroleum products.
She further said that the levy could be imposed if oil prices decline in the international market.
It is pertinent to mention here that the currently no levy is being charged on petroleum products, which essentially means that the prices of all petroleum products including petrol and diesel could get a lot higher if the government decides to collect the levy.
The minister however did not confirm whether a commitment has been made with the International Monetary Fund (IMF) to collect Rs. 750 billion on account of the petroleum development levy in the next fiscal year 2022-23.
The government is also projected to collect Rs. 200 billion on account of Gas Infrastructure Development Cess, Rs. 5 billion Petroleum Levy on LPG, Rs. 70 billion Royalty on Gas, Rs. 46 billion Royalty on Oil, and Rs. 40 billion Natural Gas Development Surcharge.
