Federal Government Aims for Record Petroleum Levy Collection in 2024-25
The federal government of Pakistan has announced an ambitious target to collect Rs1.28 trillion through the petroleum levy in the upcoming fiscal year 2024-25, representing a significant 47.4% increase from the previous year’s goal.
In the current fiscal year, the government exceeded its target by collecting Rs960 billion from the petroleum levy, surpassing the original goal of Rs869 billion. The budget for the next fiscal year aims to generate an additional Rs321 billion in revenue.
Furthermore, the government expects to collect Rs28 billion from the levy on crude oil and Rs400 million from the newly introduced gas levy. Miscellaneous receipts from oil and gas companies are projected to contribute Rs1.52 trillion to the revenue in 2024-25.
In addition, targets for the Gas Infrastructure Development Cess (GIDC) and Natural Gas Development Surcharge (GDS) have been set at Rs2.5 billion and Rs25.61 billion, respectively. The government also plans to collect Rs3.53 billion through the petroleum levy on Liquefied Petroleum Gas (LPG).
Moreover, the budget includes provisions for discounts on local crude oil prices and adjustments in royalty rates for provinces. The royalty on crude oil is set at Rs58.65 billion, while the royalty on natural gas is budgeted at Rs103.751 billion for 2024-25.
This strategic plan aims to boost revenue collection and ensure sustainable funding for the energy sector in Pakistan.
Source: Published in Dawn, June 13th, 2024