IMF to evaluate Pakistan’s petroleum levy strategy before petrol price announcement

WEB DESK: A team from the International Monetary Fund (IMF) is scheduled to meet with officials from Pakistan’s petroleum division to assess the effectiveness of measures implemented in the petroleum levy.

Currently, Pakistan imposes a levy of Rs60 per litre on both petrol and diesel, according to sources familiar with the matter.

The expected meeting is set for November 30, just before the announcement of new petrol and diesel prices in Pakistan.

Traditionally, the government revises petrol prices fortnightly, and the upcoming revision is slated for Friday, December 1st, 2023. Reports indicate a potential decrease in petrol prices.

During the discussions between the IMF and Pakistani officials on November 30, various aspects, including the petroleum levy, will be covered, as reported by ARY.

In the first four months of FY2023–24, Pakistan has accumulated Rs222 billion, a substantial increase from the Rs47.48 billion recorded during the corresponding period last year.

Read more: Petrol price expected to reduce in Pakistan

The international lender has set a target for Pakistan to collect Rs869 billion in petroleum levy during FY2023–24, aiming to enhance the country’s revenue, according to sources.

A delegation of IMF tax experts arrived in Pakistan on Monday, and reports suggest that this team will engage in discussions with the Federal Board of Revenue (FBR) regarding taxation policy over the course of approximately one week.

The delegation is expected to propose measures to the FBR for modifications in the tax policy, highlighting the need to introduce amendments aimed at expanding the tax base and maximising tax collection.

Petrol price revision

Furthermore, there is anticipation of a Rs7 per litre reduction in the petrol price in Pakistan from its current rate of Rs281.34 per litre.

However, the final petrol and diesel prices are expected to be officially announced by the government late at night on November 30th and will be effective on Friday, December 1st.

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