Islamabad: The petroleum levy on diesel continues to be lower than its level prior to the Gulf crisis, revealed Adviser to the Finance Minister Khurram Schehzad in a recent post on X.
According to Radio Pakistan, Khurram Schehzad explained that the levy had been temporarily reduced to protect consumers from the steep rise in international diesel prices witnessed over the past few months. This measure was aimed at ensuring that the increased costs were not entirely transferred to transporters, farmers, and other diesel-dependent sectors.
Schehzad further elaborated that the revenue projections for the current fiscal year, which have received approval from the National Assembly, are predicated on an average petroleum levy rate of eighty rupees per litre for both diesel and petrol. Achieving these revenue targets is crucial for financing the planned expenditures and preserving fiscal stability.
He emphasized that as international oil prices begin to decline, it is fiscally prudent and responsible to gradually reinstate the levy to its projected level rather than prolong the emergency reduction indefinitely. Schehzad warned that a revenue shortfall could expand the fiscal deficit, leading to higher costs for the economy and the public.
He concluded by noting that the recent adjustments should be seen as part of a phased normalization process for the temporarily reduced levy, rather than an arbitrary or unforeseen tax hike.