ISLAMABAD: The Federal government has doubled the Petroleum Development levy (PDL) on diesel and light diesel oil.
Sources in the ministry have informed that the Finance ministry has increased the rate of PDL on diesel from Rs12.59 to Rs25 per litre. Similarly, the government has also increased PDL on light diesel from Rs7.90 to Rs15.39 per litre.
Moreover, the Finance ministry has also enhanced PDL from Rs5.98 to Rs7.01. It is pertinent to note that the government is already charging Rs50 per litre PDL on petrol.
According to the agreement of the deal with the IMF, the government must raise Rs 850 billion in tax income during the current fiscal year by raising the Petroleum Levy to Rs 50 per litre on petrol and diesel.
Sources claim that the government has not imposed sales tax on petroleum products given the reason that the federal government is bound to transfer amounts to provinces in case it collects sales tax. However, in the PDL case, the federal government pockets entire revenue to its accounts.
Currently, the petroleum prices in the international market are going down due to partial lockdown in some cities of China and the Russian oil prices cap. However, the government of Pakistan is not passing the lower price benefit to the masses. Sources said that increasing PDL on HSD will put further burden on the farmers who are already under stress.