Petroleum Levy should be increased, IMF demands

(Infosette News) ISLAMABAD: The International Monetary Fund (IMF) has asked Pakistan to increase the petroleum levy charge to reach the objective of Rs855 billion in the collection.

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The ninth review of the $7 billion Extended Fund Facility has not yet been completed, and Pakistan is now in discussions with the IMF mission that arrived in Islamabad on January 30. (EFF).

According to individuals familiar with the negotiations, the IMF has advised the Pakistani government to pass legislation raising the fuel tax to over Rs. 50 per liter in order to reach the goal.

The government informed the IMF team during the negotiations about the imposition of the Rs 200 tax as part of the mini-budget, which might be submitted before the joint session of Parliament or in the form of an ordinance in the current month of February, according to the sources.

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The IMF mission was informed by the Pakistani government of their plan to accelerate the privatization drive in order to raise non-taxable income.

According to reports, the administration recommended in the mini-budget to impose a 3 percent flood levy on imported luxury products in order to increase revenue.

A 1 percent flood levy will also be imposed on imported commodities for which there is no charge.

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The government also intends to impose a flood levy on the banks’ foreign exchange profits.

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