Business News

ISLAMABAD: Federal government has suffered a cumulative revenue loss of around Rs 203 billion on account of Petroleum Levy (PL) and general sales tax (GST) during the first four months (July-October) of financial year 2021-22. A senior official of Petroleum Ministry revealed to Business Recorder that the federal government has collected nearly Rs 23 billion under the head of PL on petroleum products during the first four months (July-October) of current financial year against the target of Rs 203 billion, reflecting a shortfall of Rs 183 billion. In addition the estimated revenue loss on account of reduction in GST on POL products was Rs 20 billion during the first four months of financial year 2021-22. The government charged PL on HSD at Rs 5.14 per litre in September and October and announced that it will charge the same rate for November. PL in the first half of August was lower at Rs 3.84 per litre and Rs 2.05 in the second half of same month. In July, the PL was kept at Rs 1.90 per litre for the entire month. PL on petrol was raised to Rs 5.62 per litre in October - a rate to continue in November as already notified. In July and August PL on petrol was zero while it was Rs 2.11 per litre in the first half of September. During July-October (2021-22), sales tax on petrol was 16.40 percent and high speed diesel (HSD) was 17 percent in the first half of July 2021; 10.77 percent on petrol and 17 percent on HSD in the second half of July 2021; 10.54 percent on petrol and 17 percent on HSD in August 2021; 10.54 percent on petrol and 11.64 percent on HSD in September reduced to 6.84 percent on petrol and 10.32 percent on HSD during October 2021. The government budgeted Rs 610 billion PL for the current year or Rs 50.8 billion every month. The revised PL collected in financial year 2020-21 was Rs 500 billion against the budgeted target of Rs 450 billion. When contacted an official of Petroleum Division said that the Finance Division would release the first quarterly data on PL shortly. PL on kerosene oil was levied at the rate of Rs 2.06 per litre in September-October against zero collection in July-August 2021. The major consumption of SKO is by the defence sector.