Petroleum levy will be increased from PKR 30 per litre to PKR 50 per litre on RON-95 and above.

The decision was made in a meeting of Economic Coordination Committee (ECC) presided over by the Finance Minister Ishaq Dar, according to a press release received by WealthPK.

The levy will go into effect from November 16, 2022, read the press statement, and the purpose of the levy is to tax the rich people of the country who used luxury vehicles.

According to the press statement, Federal Board of Revenue had presented a summary to increase the rate of sales tax on HOBC.

The press release continued that the FBR conveyed to the EEC that the rates of sales tax on POL products were reduced to zero from February 01, 2022, which put a lot of pressure on FBR’s efforts to achieve its revenue targets.

The press release further said that the Ministry of Energy (Petroleum Division) had also submitted a summary on High Speed Diesel/Gas oil premium and informed the EEC that due to the difference of premium on import of HSD for importing OMCs and PSO, the ministry is in an unsustainable position for importing OMCs and ensuring smooth supply of HSD in the country.

After carefully examining the concerns of FBR and the Ministry of Energy, the EEC decided to allow premium on HSD subject to maximum capping at USD 15/BBL for importing OMCs other than PSO, for the two months of November and December, 2022, read the press release.

The press release said that the EEC has also granted approval of the Technical Supplementary Grants of PKR 5 billion for the conduct of the 7th population census.

Federal Minister of Planning, Development and Special Initiatives Ahsan Iqbal; Federal Minister for Power Khurram Dastgir Khan; Shahid Khaqan Abbasi, MNA/ex-PM; Minister of State for Finance and Revenue Dr Aisha Ghous Pasha; Minister of State for Petroleum Musadik Masood Malik; SAPM on Finance Tariq Bajwa; SAPM on Revenue Tariq Pasha; Federal Secretaries; Chairman of FBR and other senior officials attended the meeting.

Credit : Independent News Pakistan-WealthPk