ISLAMABAD: The federal government has been able to generate only seven percent of petroleum levy (PL) in the first five months (July-November 2021) of the current financial year 2021-22.

Sources said that the government has budgeted Rs610 billion to collect through PL in the current financial year; however, it failed and managed to collect only seven percent of total PL collection due to raise in prices of crude oil internationally and raise in exchange rate.

The government has missed the target to collect Rs254 billion or 41 percent of budgeted Rs610 billion of PL during the said period. It could collect only Rs35.5 billion in first five months. It could not generate Rs218.5 billion.

Rs203bn shortfall: Govt will have to raise petroleum levy to Rs30?

The government could fix the PL on MS Petrol and High Speed Diesel (HSD) to Rs30 per litre. In a parliamentary committee meeting held on November 26, 2021, it was said that the government had revised the PL target from Rs610 billion to Rs330 billion in the current financial year.

The Finance Division stated on November 5 that low rates of the PL on petroleum products dented the PL budget of Rs152.5 billion during (July-September, 2021) first quarter as compared to Rs20 billion realised only.

Copyright Business Recorder, 2021