ISLAMABAD: The Economic Coordination Committee (ECC) allowed increasing petroleum levy from Rs30 up to Rs50/Liter on RON 95 and above with effect from November 16, 2022, as required by the IMF deal.
According to details, Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided over the meeting of the Economic Coordination Committee (ECC) at the Finance Division on Friday.
During the meeting, the Federal Board of Revenue tabled a summary on the increase in rate of Sales Tax on HOBC. It was conveyed that rates of Sales Tax on POL products were reduced to zero from February 1, 2022, that put pressure on FDR’s efforts to achieve its revenue targets. Therefore, the ECC after deliberation allowed an increased in petroleum levy from Rs30 up to Rs50/Liter on RON 95 and above with effect from November 16, 2022, which is a luxury good being consumed by wealthy consumers in expensive vehicles.
The Energy Ministry (Petroleum Division) also submitted a summary on High Speed Diesel/ Gas oil premium and informed that due to difference of 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 detailed discussion allowed premium on HSD subject to maximum capping at US$ 15/BBL for importing OMCs other than PSO for the months of November and December, 2022.
The ECC also approved Technical Supplementary Grants of Rs5 billion for conduct of 7th population census.
Federal Minister of Planning, Development & Special Initiatives Ahsan Iqbal, Federal Minister for Power Khurram Dastgir Khan, former PM and MNA Shahid Khaqan Abbasi, Minister of State for Finance and Revenue Dr Aisha Ghous Pasha, Minister of State for Petroleum Musadik Masood Malik, SAPM on Finance Mr Tariq Bajwa, SAPM on Revenue Tariq Pasha, Federal Secretaries, the FBR chairman and other senior officers attended the meeting.
It is to be noted that currently, the levy on high-octane petroleum products is Rs30. The increase has been made as per the conditions of the International Monetary Fund (IMF).
However, on November 31, the federal government decided to keep the prices of petroleum products unchanged for the next fortnight besides extending the last date for filing tax returns.
Earlier addressing a press conference in Islamabad, Finance Minister Ishaq Dar has asserted that the government has decided to keep the prices of petroleum products unchanged for the next 15 days.
The current prices for petrol are Rs224.80 per litre, Rs235.30 for Highs Speed Diesel (HSD), Rs186.50 for Light Diesel and Rs191.83 for kerosene oil.
