ISLAMABAD: Collections under Petroleum Levy (PL) will suffer a shortfall of Rs 100 billion in the first two months of the current fiscal year with the government’s decision to abolish it on petrol, light diesel oil (LDO) and Kerosene Oil (SKO) from July 1, 2021.
The government had budgeted Rs 610 billion under PL for the current fiscal year against the revised collection of Rs 500 billion in 2020-21 – a rise of 22 percent.
However, the only petroleum product on which PL continues to be levied, albeit at a lower rate, is High Speed Diesel (HSD) which is projected to net the government Rs 1.6 billion in July-August 2021.
PL on HSD was raised from Rs 1.90 per litre in July 2021 to Rs 3.84 per litre effective from 1 August to 15 August 2021; and reduced to Rs 2.05 per litre effective 16 August till the end of the month. In order to achieve the budgeted PL collection target the government will have to jack up PL on MS Petrol and HSD to the maximum allowed of Rs 30 per litre.
Copyright Business Recorder, 2021