Finance Minister Shaukat Tarin has on Friday after announcing the Budget 2021-22 said the prices of petroleum products will be increased in the coming month as talks with the International Monetary Fund (IMF) continue over the stabilization of revenue collection.
Shaukat Tarin said the petroleum levy would be raised up to Rs600 billion in the announced Budget 2021-22 so the levy will have to be jacked up in the range of Rs20 to Rs25 per litre, while currently Rs5 per litre levy was being charged.
When asked whether Pakistan will pull out of the IMF programme if the Fund rejects the proposals and sticks to its demands, the finance minister said Pakistan will not exit from the programme, adding that the Fund had asked Pakistan to present its budget so negotiations will continue.
He said Saudi Arabia had agreed to provide oil on deferred payments, but it could not be ascertained how much oil Pakistan will get.
Ambitious target
In the Finance Bill 2021-22, the government is eyeing Rs506 billion in additional revenue through taxation and enforcement measures during the next fiscal year.
The FBR will fetch a net additional collection of Rs264 billion through taxation measures and another Rs242 billion in the shape of enforcement measures.
In order to materialise the fixed tax target of Rs5.8 trillion, the FBR will generate Rs2.1 trillion through direct taxes and Rs3.6 trillion in the shape of indirect taxes.
It clearly indicates that the reliance on increased indirect taxation will continue for the next fiscal year.
Federal Govt. Notified Lowering Sales Tax On Petroleum Products
Earlier, the Federal government had announced to lower sales tax on petroleum products.
According to a notification issued today, the sales tax on Kerosene oil was lowered to 10.07% against the previously charged tax of 15.44%. The sales tax on light diesel was lowered to 3.67% from 7.56%.
However, the notification mentioned that the sales tax would be charged at 17% on petrol, and high-speed diesel, and there would be no changes in it.