IMF to Scrutinize Pakistan’s Petroleum Levy Strategies in Crucial Meeting

IMF to Scrutinize Pakistan's Petroleum Levy Strategies

Sabiha Rajpoot | November 29, 2023 | 08:29 AM IST | Pakistan News, World | Follow on Google News

IMF to Scrutinize Pakistan’s Petroleum Levy Strategies in Crucial Meeting

IMF to Scrutinize Pakistan’s Petroleum Levy Strategies in Crucial Meeting

The International Monetary Fund (IMF) is set to engage in a critical meeting with Pakistan’s petroleum division officials to assess the effectiveness of measures taken under the petroleum levy for revenue enhancement, as reported by ARY News, citing insider sources.

Current Petroleum Levy Situation

Currently, Pakistan imposes a levy of Rs60 per liter on both petrol and diesel. The upcoming meeting, scheduled for November 30, is anticipated to delve into various aspects related to the petroleum levy and other pertinent matters, fostering a dialogue between the IMF and Pakistani officials.

Revenue Boost Targets and IMF’s Stance

In the initial four months of the fiscal year 2023-24, Pakistan has managed to accumulate Rs222 billion, a stark contrast to the Rs47.48 billion collected during the same period last year. The International Monetary Fund has assigned Pakistan the ambitious target of collecting Rs869 billion in petroleum levy during the fiscal year 2023-24, aiming to significantly bolster the country’s revenues.

The meeting gains significance in the backdrop of the recent arrival of a team of IMF tax experts in Pakistan. This delegation, currently engaged in consultations with the Federal Board of Revenue (FBR) for about a week, is set to propose measures to amend the tax policy. The suggested amendments are geared towards expanding the tax net and optimizing tax collection to meet the targets outlined by the IMF.

Sabiha Rajpoot

Sabiha Rajpoot, a young journalist, having BA- Journalism degree, writes on different scenarios. Sabiha is also a doctor degree at DHMS.