ISLAMABAD: The International Monetary Fund (IMF) has proposed to raise the levy on petrol to Rs 60 and also to restore the 18% GST, which was abolished in March 2022.
The IMF suggested that the same rate of Federal Excise Duty (FED) should be applied on locally manufactured cigarettes whether the project is local or non-local, while the Petroleum Development Levy (PDL) on polluting machinery should be levied. PDL) is suggested to be installed.
The IMF has proposed to the FBR to increase border controls by gradually increasing excise duty on domestically manufactured cards and luxury goods such as yachts, especially for oil by-products from sensitive areas. Illegal supply can be avoided.
According to sources, the IMF has also proposed to tax e-cigarettes at par with domestic cigarettes.
Federal excise duty on petroleum products amounted to 0.7 percent of GDP in fiscal year 2023, excise on other items was 0.4 percent of GDP, mostly derived from federal excise duty on cigarettes.
The Petroleum Development Levy has changed several times in recent years, but was significantly increased in FY2023.
The petroleum levy development rate on petrol in July 2022 was Rs 20 per litre. It has been reduced to Rs 50 per liter from November 2022 and Rs 60 per liter by September 2023.
