Government adjusts levy by making lower reduction in oil prices. DESIGN: ANAM HALEEM
The collection of petroleum levy and general sales tax on sales of petroleum products to consumers is expected to go up by Rs1.3 billion in April following an increase in the levy as the government has made less-than-required reduction in prices of oil products, sources say.
For the whole month, the government is likely to receive Rs24 billion in revenues on account of petroleum levy and GST.
According to sources, the government had got Rs22 billion on account of petroleum levy and GST in March and this came despite withdrawal of the increase in oil product prices early last month.
On Sunday evening, the government announced a slight reduction in prices of petrol, diesel, kerosene oil and other products despite a sharp decline in the international market.
In its recommendation, the Oil and Gas Regulatory Authority (Ogra) had called for slashing the price of high speed diesel by Rs1.45 per litre, petrol by Rs1.80 per litre, light diesel oil by Rs4.93 per litre and kerosene oil by Rs4.46 per litre.
An official told The Express Tribune the finance ministry had opposed the cut in petroleum product prices and suggested that the reduction should be adjusted in the petroleum levy. The ministry argued that it had lost Rs4.5 billion in revenues last month after the increase in oil prices was taken back and the rate of petroleum levy was brought down following orders of the former prime minister.
Later, the ministry agreed on a small decrease in prices and the rest was adjusted in the petroleum levy “to make up for the revenue loss a month earlier.”
According to a notification issued on Sunday late evening, the petrol price came down by Rs0.77 to Rs102.30 per litre, high speed diesel by Rs0.62 to Rs108.59 per litre, light diesel oil by Rs1.50 to Rs93.28 per litre and kerosene oil by Rs1.64 to Rs98.26 per litre.
Published in The Express Tribune, April 2nd, 2013.
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1719053250-0/BeFunky-collage-(5)1719053250-0-270x192.webp "non solar consumers bear rs200b burden")
Please spare the poor people with these increased levy. Tax the rich for which Amnesty schemes are announced. FBR announce a Amnesty scheme for poor