The federal government is considering imposing a sales tax on petroleum products to generate billions of rupees in additional tax revenue from consumers.
The senior members of the economic team have instructed the Federal Board of Revenue (FBR) to draft proposals for a sales tax on petroleum products.
Should the government approve the sales tax on petroleum products, it is likely that petroleum prices will not decrease as planned on August 1, 2024.
The Oil & Gas Regulatory Authority (OGRA) has recommended that the government reduce diesel prices by Rs. 10 per liter and petrol prices by Rs. 5.50 per liter, in line with the current international market trend.
Notably, the government has already imposed a petroleum development levy on petroleum products. Additionally, the parliament approved gradually increasing the PDL on petroleum products from Rs. 60 per liter to Rs. 70 per liter in this budget.
