Petroleum products: Sindh government may impose ''Infrastructure Cess''

Following in the footsteps of federal government, the Sindh government is likely to impose "Infrastructure Cess" exclusively on petroleum products, in the provincial budget 2018-19. According to details, the federal government in recent annual budget proposed to increase petroleum levy to Rs 30 per litre in order to generate Rs 510 billion additional revenue.
Now, the Sindh government is also contemplating the budget proposals floated by the provincial excise, taxation and narcotics department to impose infrastructure Cess exclusively on petroleum products in next provincial budget 2018-19, which will give further hike in its retail prices.
The department has suggested levy petroleum products at 0.25 percent or 0.5 percent initially to generate additional revenue to Rs 2.5 billion as the petroleum products, which were earlier imported by the government of Pakistan, are now being imported by oil marketing companies under the licenses granted by the government.
Therefore, it is suggested to levy Cess on petroleum and oil products either transported by pipelines or by road, which requires maintenance and development of infrastructure and protection. The department stated that Sindh government spent huge on the maintenance and development of infrastructure for smooth transportation of goods including POL products but also on the police and rangers for protection.
Similar, proposal was also forwarded for LNG products as its importers are reluctant to pay the infrastructure Cess as the same was not being collected on petroleum products. The Sindh government was also recommended to impose property tax on multi-storey residential units built on plots up to 120 square yards to generate additional revenue to Rs 100 million, albeit the same residential units are presently exempted from property tax.
Moreover, the provincial excise department has strongly suggested the Sindh government to increase cotton fee, which is presently Rs 10 per 100 kilogram, to Rs 15 per 100 kilogram of the said commodity. The department has also proposed 500 percent increase on the permit fee or renewal of liquor license.