Govt to bag Rs26.7bn tax on POL products: The News

By Dilshad Azeem

ISLAMABAD: The federal government is all set to earn Rs26.695 billion on petroleum products in the current month with each Pakistani carrying the burden of almost Rs6 per day in shape of indirect taxes on POL products, The News has learnt.

According to officials, the government will collect Rs18.6bn Petroleum Development Levy (PDL) and Rs8bn General Sales Tax (GST) by maintaining the prices of petroleum product for the current month.

At the same time, former acting chief justice (Retd) Rana Baghwandas is heading a commission constituted by Chief Justice Iftikhar Muhammad Chaudhry which will take up the case of petrol prices challenged before the Supreme Court.

Officials at the Ministry of Petroleum disclosed to The News that the oil companies’ commission plus freight charges are expected to be Rs4.263bn thus making, along with government’s earnings, a total of Rs30.95bn or 52.4 per cent of the total spending in April.

Additional Secretary Ministry of Petroleum and Natural Resources G A Sabri, when contacted for comments, confirmed that the petroleum levy alone is estimated to be around Rs18bn in the current month.

Sabri maintained that Pakistan’s import bill stands at almost US$ 500 million or roughly Rs40 billion a month. However he said he does not have detailed figures. Interestingly, the actual crude oil amount stands at Rs28.113b or 47 per cent whereas the state taxes and commission & freight are Rs30.959b or 52.4 per cent of the petroleum products price at pumps, reveals the officially notified figures.

Beginning from crude to final product at filling station the 160 million population of Pakistan contributes Rs166.84 every month (Rs5.56 every day) in form of taxes, PDL and GST.Likewise, a citizen pays Rs369.20 per month or Rs12.306 per day in shape of indirect taxes on petroleum products from import stage to market.

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