ISLAMABAD - Pakistan's government has committed to increasing its petroleum levy target by 50 billion, reaching a new total of PKR920 billion for the current fiscal year. This decision, conveyed during an International Monetary Fund (IMF) review meeting today, comes as part of efforts to address a shortfall in non-tax revenue and difficulties in collecting the Fuel Infrastructure Development Cess (GIDC).
Despite collecting 367% more in petroleum levies in the first quarter than expected, with receipts totaling PKR222 billion, authorities have decided not to lower fuel prices from their current highs amidst ongoing inflationary pressures. The petroleum tax rate will remain at PKR60 per liter.
The government has also revised its GIDC revenue goal downward by PKR10 billion to PKR30 billion. Following the Supreme Court's annulment of the GIDC statute and ensuing legal hurdles, only PKR80 billion has been collected out of a total GIDC accrual of PKR416 billion, leaving approximately PKR337 billion outstanding.
In addition to these measures, the Federal Board of Revenue (FBR) is maintaining its tax revenue target at PKR9.415 trillion for the fiscal year but has adjusted individual tax targets in response to the impact of import compression. Income tax goals have been increased by PKR346 billion, while projections for sales tax, customs duties, and federal excise duty have collectively been reduced by PKR347 billion (USD1 = PKR281.614). The FBR intends to compensate for diminished import-stage revenues with heightened domestic taxation efforts.
Concurrently, Pakistan's Roshan Digital Account saw robust external financial engagement with an inflow of $6.9 billion in October, signaling continued international investment interest despite domestic fiscal adjustments.
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