The federal government is considering imposing a sales tax on petroleum products to fetch billions of rupees more tax revenue from consumers.
Sources told ProPakistani that the high-ups of the economic team have directed the Federal Board of Revenue (FBR) to prepare proposals regarding the sales tax on petroleum products.
If the government accords approval to impose a sales tax on petroleum products, then there is a chance that the government will not be able to reduce petroleum prices starting on August 1, 2024.
Sources added that the Oil & Gas Regulatory Authority (OGRA) has recommended that the government reduce diesel prices by Rs. 10 per liter and petrol prices by Rs. 5.50 per liter, in line with the current international market trend.
It is pertinent to note that the government had already imposed petroleum development levy on petroleum products. During this budget, the parliament also approved gradually increasing PDL on petroleum products from Rs. 60 per liter to Rs. 70 per liter.