Amendment to Ordinance sought: MoF for transfer of petroleum levy fixation power to Cabinet

ISLAMABAD: The Ministry of Finance has proposed an amendment to the Petroleum Products (Petroleum Levy) Ordinance, 1961, to transfer the power of fixing the petroleum levy from the parliament to the Cabinet, taking the levy rate up to Rs60 per litre.

While reviewing Finance Bill 2023-24 on Tuesday, the Senate Standing Committee on Finance chairman asked the Ministry of Finance to explain an amendment to the Petroleum Products (Petroleum Levy) Ordinance, 1961.

Joint Secretary (Budget) Finance Division informed the committee that the proposal is to enhance the ceiling from Rs50 per litre to Rs60 per litre under the Petroleum Products (Petroleum Levy) Ordinance, 1961.

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After excluding Fifth Schedule, the federal government can increase levy beyond Rs50 per litre. The levy is the prerogative of the National Assembly and an amendment would be able to allow the federal government to raise PL on POL products, Joint Secretary (Budget) Finance Division added.

Chairman of the committee Senator Saleem Mandviwalla responded that it means the government will not come to the Parliament for raising the rate of the PL but directly get approval from the cabinet to bypass the parliament.

Senators have strongly opposed the Ministry of Finance’s move to bypass the Parliament and empower the government in the proposed amendment in the Petroleum Levy Ordinance, 1961, to increase petroleum levy beyond Rs50 per litre.

Committee members apprehended during the meeting that the government has worked out a petroleum levy beyond Rs50 per litre and will increase it up to Rs60 per litre only keeping in view the consumption pattern in the country after securing enabling power through the Finance Bill 2023-24.

Copyright Business Recorder, 2023