The Economic Coordination Committee (ECC) of the Cabinet on Friday allowed increasing petroleum levy to Rs. 50 per liter on Hi-octane (RON 95 and above).
The meeting, presided over by Finance Minister Ishaq Dar, considered a summary of the Federal Board of Revenue (FBR) regarding an increase in the rate of sales tax on high octane blending components (HOBC).
It was conveyed that the rates of sales tax on petroleum products were reduced to zero from 1st February 2022 which put pressure on FBR’s efforts to achieve its revenue targets.
After deliberation, the ECC allowed increasing petroleum levy from Rs. 30 per liter up to Rs. 50 per liter on RON 95 and above with effect from 16th November 2022.
The Ministry of Energy (Petroleum Division) submitted a summary on high-speed diesel (HSD) and gas oil premiums and informed that due to the difference in premium on import of HSD for importing OMCs and PSO, there is an unsustainable position for importing OMCs and smooth supply of HSD in the country.
In order to ensure sustained supply/import security, the ECC after a detailed discussion allowed the premium on HSD subject to a maximum capping at $15/BBL for importing OMCs other than PSO for the months of November and December 2022.
The ECC also approved a technical supplementary grant (TSG) of Rs. 5 billion for the conduct of the 7th population census.
Federal Minister of Planning Ahsan Iqbal, Federal Minister for Power Khurram Dastgir, former prime minister Shahid Khaqan Abbasi, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Musadik Malik, SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Pasha, Federal Secretaries, FBR Chairman and other senior officers attended the meeting.