The federal government is exploring the possibility of introducing a sales tax on petroleum products to increase tax revenue by billions of rupees.
According to ProPakistani, citing sources, senior members of the economic team have instructed the Federal Board of Revenue (FBR) to develop proposals for implementing a sales tax on petroleum products.
Should the government approve the sales tax on petroleum products, it is likely that the planned reduction in petroleum prices on August 1, 2024, might not occur.
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It is pertinent to mention that the Oil & Gas Regulatory Authority (OGRA) has advised the government to lower diesel prices by Rs. 10 per liter and petrol prices by Rs. 5.50 per liter, in accordance with recent international market trends.
The government had previously implemented a petroleum development levy (PDL) on petroleum products. This budget also saw parliamentary approval for a gradual increase in the PDL from Rs. 60 per liter to Rs. 70 per liter.
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